Everest Industries Ltd Management Discussions.
GLOBAL ECONOMIC OVERVIEW
The global economy is expected to grow by approximately 2.6% in 2019. As per World Bank, growth among emerging and developing economies is forecasted to fall to a 4 year low of 4% in 2019. The growth is constrained by sluggish investment and risks including rising trade barriers, renewed financialstress and sharper than expected slowdowns in several major economies. Current economic momentum remains weak, while heightened debt levels and subdued investment growth in developing economies are holding countries back from achieving their potential. With growth in advanced economies projected to gradually decline to about 1.7% once economic slack is eliminated, the further pickup in global activity will entirely be driven by emerging markets and developing economies.
INDIAN ECONOMIC OVERVIEW
The Indian GDP has grown by 6.9%1 in Financial Year 2019. The decline in GDP growth is on account of multiple factors like, fallout of NBFCs, low credit growth, tight liquidity conditions, dismal growth in wages and flat exports owing to a global slowdown. Indian manufacturing continued its downtrend growing at 3.1%2. However, GDP growth rate is expected to bottom out in the coming quarters. RBI has cut rates twice and is likely to follow with another in the upcoming policy with the liquidity scenario improving. With the government continuing to roll out policies focusing on rural population, there could be some relief to the ongoing distress and signs of recovery should be visible in the second half of the financial year.
RURAL INDIA GROWTH
The Financial Year 2018-19 in India saw a shift in jobs from farm to non-farm occupations. As a result, economic hardship in the agricultural sector became acute and also non-farm rural incomes got adversely affected with slower wage growth and the lack of new jobs during the past year. This was negated by an increase in Minimum Support Price of agricultural produce.
The share of agriculture in rural output is 39%2, whereas the rest is contributed by the manufacturing, construction and services sectors. However, a large 64% of rural employment is in the agriculture sector. Agriculture in India generates only 15.6% of GDP but sustains 44% population of India.3
The agriculture sector in India is expected to generate better momentum in the next few years due to increased investments in agricultural infrastructure such as irrigation facilities, warehousing and cold storage. Budget allocated to the sector and for farm welfare in 2018-19 doubled to 57,600 Crores The government has taken various initiatives like4:
PM-KISAN scheme which will benefit ~1.2 Crore small and marginal farmers with an annual budget of 75,000 Crores by giving direct income support5
The government declared 50% hike in MSP for some of the crops and announced an institutional credit of 11 Lakh Crores for the agriculture sector6
To build One Crore rural houses with a budget of ~ 82,000 Crores, 87% of the target has been completed till date
PM Health Insurance scheme is likely to give the rural Indian additional spending power that he can then use for alternative investment
URBAN INDIA GROWTH
The population in urban India has grown and stood at around 28.5 Crore people constituting 28% of the total population. Indian real estate is expected to contribute 13% to the countrys GDP by 2025 and reach a market size of USD 1 Tn by 2030. By the year 2021, more than 43.2 Crore people will live in urban areas and this is likely to increase to 67 Crores by 20317.
For urban development, 100 cities are selected to become Smart Cities with an outlay of 2.04 Lakh Crores of which projects worth
4,800 Crores have been completed. The construction industry plays a major role in the development of urban India and has contributed nearly 9% of the national GDP during the last five years and till 2025 it is expected to grow at an average of 7.1% each year8.
The World Bank has forecasted that India will continue to remain the fastest growing major economy in the world in 2018-19. According to the World Bank report9, Indias GDP will climb up to y-o-y of 7.5% in the next two financial years (2019-20 and 2020-21)10, as a result of accelerated growth driven by an upswing in consumption and investment growth. India is the third largest consumer market having growing consumer spending in domestic market, with a rapidly increasing middle class. To cater to the demands and consumption of this burgeoning middle class, the manufacturing sector is expected to grow from current 16% of Gross Domestic Product (GDP) to 25% by 202210. The logistics sector is the backbone to any countrys industrial growth and development. Logistics includes transportation, inventory management, warehousing, materials handling and packaging and integration of information. It works like a bridge between the point of origin and the point of consumption. From mere transportation of goods, with the on-going deeper penetration of internet and e-Commerce, it has become an integral part - covering all aspects from supply chain to warehousing and delivering. In the last 4 years, the Indian warehousing and logistics market has risen to
56,000 Crores and is projected to reach a CAGR of 9.5% during 2019-202410 .
9World Bank Report-Global Economic Prospects: Darkening Skies
10 Report by IBEF
The real estate sector contributed 7% to the countrys GDP and its share is expected to double by 204011. The government rationalisation of GST rates from 8% to 1% in the affordable housing criteria is seen as an immediate move towards getting the real estate sector the much-needed acceleration. With effects of RERA and GST waning and the builders and developers falling in line, the sector holds promise. Moreover, rising purchasing power, rising population, increased push towards social economic infrastructure and rural migration to urban areas are seen as the major reasons for the growth in the Housing Sector.
The Pradhan Mantri Awas Yojana, provided a total of 1.07 Crore houses in the last 4 years. Affordable Housing Fund (AHF) has been established with National Housing Bank with a corpus of 10,000 Crores as a Priority Sector Lending. Also, under the Housing for All Scheme, The Ministry of Rural Development and Ministry of Housing and Urban Affairs provides pucca houses to all. Achieving the goal of Housing for All for a shortage of 1.2 Crore Units in Urban Area will be a big step in the realization of New India Vision 2022 that will trigger economic growth and create millions of jobs for skilled as well as unskilled workers12.
11Timesofindia 12Ministry of Rural Development
The Indian roofing industry is witnessing a paradigm shift. Customers are now demanding durability and flexibility along with aesthetically pleasing designs for their roofs. The industry is preparing for the next generation of roofing.The demand for fibre cement roofing sheets was supported by different factors on an industry-wide scale by improved disposable income in the hands of rural population, implementation of MSP, good monsoons, increased farm efficiency, nuclearization of families, government initiatives around Housing, etc. Growth in the infrastructure and industrial segments have been a major demand driver for the roofing industry. Major shift is observed from clay tiles and conventional roofing. Customers are looking for architectural solution which provides innovative shapes and attractive colours. Everest offers complete solutions in the roofingportfolio. From being the pioneers of coloured roofing sheets Everest Super to the non-asbestos roofing sheets Hitech, from galvalume metal sheets (Everest Steel Roof) to the transparent roofing sheets (Everest Rooflight) we provide complete solutions, along with the required accessories.
Estimated at 42,000 Crores the roofing industry is expected to grow between 6-8% relying upon development in GDP and rural income and better monsoons. Supported by positive monetary developments, the Company sold higher volumes during the year which also saw our highest ever turnover.
The scope for controlling costs remains never ending and continues to be one of the priorities of the Company.
Our Material Utilisation efficienciesimproved and we also benefitted from better negotiations from material suppliers. Overall, however, material costs were stable as exchange rates hardened during the year. All plants saw measures to review and optimise material use patterns to gain from usage efficiencies.
Our manufacturing costs were optimised due to higher output and improved factory utilisations. Balancing equipment were added at many plants and Kolkata plant was refurbished to improve the quality and quantity of output.
We were successful in gaining market share through targeting strategic markets and creating value added products. The focus on increasing penetration resulted in gaining market. The industry grew by about 6% while we grew at 12% on volume.
Market prices have not increased in line with increase in raw material prices. Our premium roofing sheet, Everest Super, is priced at a premium to the regular fibre cement roofing sheets and with an increase in income levels the demand of the product has increased for this particular product improving our overall realization for the
Brand Everest and Customer Servicing
We have made a strategic shift in our marketing and branding initiatives. From a need-based reactive approach to a proactive strategy that acts as a springboard, we are working closely with our customers, trying to understand their nuances and developing solutions and systems that work for them. It enables us to be the closest to our customers and in the process grab more eyeballs and reinforce brand recall.
Everest Super the coloured roofingsheets - which our company had launched in 2016, has been changing the landscape in many parts of rural India. Available in multiple colours, these sheets are fulfilling the growing aspirations of the masses. More and more people in rural India are now using the coloured roofing sheets. The Everest brand continued to strengthen with its initiatives like in-shop and on-shop communication initiatives to create significant
We continue to educate, inform and train roofers about these new coloured roofing sheets. Our focus on dealer engagement continues.
We concentrated on consistent efforts to reach out to consumers and influencers. We consciously undertook marketing initiatives, which positively impacted our brand.
Our Non-Asbestos roof also picked up and has benefitted the
Company from a reach perspective and also in the value we are able to bring to our customers.
Polycarbonate roofing which adds to our product range also helps us to bring value to our customers and to offer them the entire range of products.
During the previous year we addedmetalroofinglines in a couple of our factories all of which are doing well and delivering timely, efficient products to our customers.
We also increased our focus in servicing the dealer network better by improving our logistics where we have reduced delivery times to market and by reducing cost of dispatch through depot alignment. The lead time for the resolution of customer complaints was reduced from
45 days to 8 days which has led to a huge surge in dealer confidence.
New quality initiatives were undertaken at each plant to enhance quality with an aim to push the expectations of consumers even higher.
The Boards and Panels Industry
Across large parts of the country, an unprecedented optimism is palpable. Indias upwardly mobile society is making lifestyle choices that were unimaginable a few decades ago. Economic empowerment, rising aspirations, disposable income and a seamless digital life are changing perspectives about lifestyles. With a surge in affordable housing and ready-to-move-in offices, the demand for faster, speedier and quality products in interior infrastructure is growing. The new age wood panel Fibre cement board is now gaining acceptance in private as well as government projects. These eco-friendly Fibre cement boards are becoming popular as the alternate wood-based panels, because these are contemporary and cost effective and offer faster and dry construction. At Everest, we are well poised to cater to this demand with our existing, as well as upcoming solutions and systems. Fibre cement boards are superior to conventional boards and panels such as gypsum boards, MDF, plywood, etc. It is a revolutionary product which brings in speed and strength to construction with multiple applications in the interiors and exteriors for industrial, residential and commercial structures. The Fibre cement boards and panels industry has grown at 17 % in the last year. The size of this market is expanding, and many peers have followed the trend by starting manufacturing boards which have helped to create awareness as a whole. With the wood panel industry sized at roughly 50,000 Crores, there is a large opportunity for us to serve going forward. Dry wall construction is expected to grow at 13.4 % CAGR.13 Numerous government initiatives such as Housing for All, Smart Cities, Swacch Bharat etc have started to supplement the demand for these products. Our wide product range has helped us to be the market leader in the boards and panels segment.
Everest Boards and Panels Solutions
Everest today offers complete solutions in the Fibre cement boards and panels category - from ceilings to walls, from floors to cladding and dry wall systems for faster and dry construction. The vast range of Fibre cement products is manufactured at our state-of-the-art plants in Roorkee (Uttarakhand) and Nashik (Maharashtra). The industry is moving towards value addition, which will be a potential growth driver, going forward. Everest continued its focus on growing the value-added product portfolio, to cater to the growing demands of the consumers. Everest Rapicon Walls, Cement Wood planks, Designer Ceiling tiles and Heavy Duty Boards are gaining traction with architects and interior designers.
In India, the use of Fibre cement boards is catching on. Therefore, the need for education on superior product attributes and possible applications is important. We focused on educating our partners to position Fibre cement boards as a substitute to wood and wood-based panels in the Tier-II and Tier-III markets. We continued to train applicators, engage with influencers to create awareness of the advantages of our products over other wood-based panels. Architects and Designers are the key influencers to the purchase decision making process of Fibre cement boards. The Boards and Panels business partnered with various exhibitions, seminars and thought leadership platforms which cater to the architect and interior designer fraternity, with a target to educate the audiences. Training programmes to increase awareness, improve workmanship and create a better rapport between our team in the fieldand contractors / installers, were conducted.
Pehchan: The Pehchan programme is essentially an awareness programme to be run in synchronization with the expansion plan. The objective is two fold: to reach out to the contractors and installers to make them aware of the applications and advantages of Everest products; and secondly, to familiarize our team with the contractors and installers. In the last year we reached out to 7362 contractors and installers through this engagement.
Kaushal: A skill enhancement programme, Kaushal is a focused one-day training programme where the interested contractors and installers from the data base of Pehchan are provided hands-on training on our applications. In Financial Year 18, we have trained 5809 new contractors through Kaushal.
Everest offers Green Solutions as an endeavour to save the planet by lowering the carbon footprint caused during construction. At the core of Green Solutions lies Everest Fibre cement boards, an advanced green material regarded as the best substitute for natural wood and wood-based products. Made from 40% recycled content, Everest Fibre cement boards boast of excellent versatile applications and thus, serve as clean and green material.
With increased awareness about modern methods of construction and with a need to work with speed, our Fibre cement boards are finding acceptance with the residential, commercial and industrial segments. In this regard, the company has been working on improving its product and solution mix with the test marketing of few new offerings for interior and exterior designer partitions, ready to install cladding solutions and solution for damp proofing of walls. There has been positive learning from these efforts which are expected to translate into new solution offerings from the Company this fiscal year.
Steel Buildings Industry
The need for rapid infrastructure development in the country to match the economic growth is spurring a corresponding demand for Pre-engineered buildings and ready to use building technology. To match the pace of infrastructural growth, the availability of world-class building products and technologies is essential. In view of the potential to increase productivity and efficiencyand maintaining quality, the role of Pre-engineered buildings has been well acknowledged by the global experts.
The need to construct fast and durable structures is leading to steel buildings gaining popularity worldwide. Steel buildings have primarily been used in industrial structures such as factories and warehouses and also for infrastructure projects like metro stations, shipyards and airport hangers. Use of pre-engineered technology is increasing primarily because these are technology driven versatile, economical and environment friendly method of construction.
Everest Steel Buildings Solutions
Everest has been a pioneer to adapt globally accepted cutting-edge technologies. Everest Steel building division offers Integrated building solutions which are compliant to all applicable quality standards. At the same time these solutions meet all the expectations of architects and structural engineers who endorse indigenous Pre-engineered buildings, specific to the local climatic conditions and culture.
Everest is committed to providing end-to-end solutions under one roof by systematic development from structural design to installation. Everest is one of its kind player in the PEB segment, offering end-to-end solutions. From designing to manufacturing to erection of the building, we do it all. Everest is the only concept to commissioning player in this segment that can boast of in-house capability ranging from design to erection of steel structures, complemented by an array of wall and roof solutions, literally and figuratively crowned by its roof top solar offering. In addition to PEB structures for industrial usage, the company also offers Smart Steel Buildings, a Light Gauge Steel Frame (LGSF) structure that sees multiple applications across residential and commercial segments.
Timely performance, excellent service backup and a faster response time ensures high percentage of repeat clientele for the company. We have completed the designing, manufacturing and erection of over 2,500 Pre-engineered buildings since our inception. During the year, the company completed 164 projects covering more than 8,00,000 Sq m. The order book of the company stands at 20,000 MT at the year end.
In FY2018-19, Everest delivered some remarkable Pre-engineered building projects like Rockman Industries Ltd at Srikalahasti (Tirupati), T.N. The company also completed a project for ATG Tyres at Dahej, Gujarat spread over an area of 59,343 Sqm and BKT Tyres at Bhuj, Gujarat spread over an area of 22,540 Sq m. Everest also delivered a complex G+6 multi-storey process plant building for Godrej Agrovet ltd at Chintampalle, A.P. Total 7 buildings were completed spread over an area of 1,00,500 sq. ft. We are committed to growing our footprint and brand position through efficiencybuilding and responsiveness to customers. Although, volatile steel prices have hampered gains made on other efficiencies created, we are steadfast in our belief that these initiatives are sustainable and steel prices will be stable.
In our Steel Building Segment, we have combined our expertise and wide product offerings to offer Integrated Building Solutions to our prestigious customers, for all their building needs. We have conceptualized and delivered Steel buildings comprising of built-up sections for framing structure, Light Gauge Framing and Boards for internal partition in the building and Rapicon wall panels (aerated concrete) on the outside periphery and roof top solar with both capex and opex options.
Raw Material Impact
Steel price volatility and unrealistic price increases continue to have an adverse impact for the entire industry. Import restrictions have affected profitability.
The Indian government imposed an emergency Minimum Import Price (MIP) measure in Feb 2016 for only the second time in history. MIP has since been replaced by long-duration anti-dumping duties (ADD) applicable till 2021.
OPERATIONAL QUALITY IMPROVEMENT
Various steps taken to improve productivity at units translated into 14% higher production for Roofing
Boards. In addition, Rapid Construction walls production (Rapicon) production increased by 8%. We also enhanced our Rapicon production capacity by 20%.
This resulted in additional operation efficiencies and reduction in conversion cost by 2%. Additional growth in production came mainly from new products as a result of which we were enthused to launch a pipeline of projects to improve Everest super colourroofingsheets productivity and quality during this financial year.
We also worked on our Finished goods dispatch capabilities which were improved across all units, by improving infrastructure to meet higher customer service levels.
On Fibre cement boards we introduced Artewood A special purpose paint coated Fibre cement board for external/Internal use which looks like wood but carries the properties of a Cement wall. We believe this is a better solution for our customers who wish to use wood as a finish but are not able to do so to the exteriors. This is because our product issegment and17%higherproductionfor termite, fire and moisture resistant and can stand the vagaries of weather.
Power consumption (KWH/MT of production) reduced by 1.6% across roofing lines compared to last year. We also completed automation of flash feeding at Kymore and Lakhmapur Works.
We set up an additional paint line at Lakhmapur Works to produce world class coated Fibre cement products for special use.
We also modernised Calcutta Works to enhance the capacity of
Roofing products. This was commissioned and during the year we had slowly increased production to enhanced capacity after initial stabilization period.
As a result of our efforts we also were recognised by our customers and other national and industry associations which awarded us with the following awards.
We recorded our highest ever turnover and the profit for the year was at its highest. We continue to invest our earnings in the business and expect that this would result in a large change to the basis of the business which would lay the foundation for future growth. Piggyback the higher profit, Cash flows were generated was invested back in the business to build additional stock for our peak season and to enable market growth initiatives which resulted in increased receivables at the end of the year. We believe this is an investment in the right direction and would yield rich dividends in the times to come. Our borrowings continued at reasonable levels and debt equity ratio maintained at 0.16. The impact of prepayment of loans in the previous year and added repayments during the year was felt in the current year where our borrowing costs declined by over 30% despite a hardening of the interest rates. This was possible due to lower use of fund-based limits.
GST posed a significant bill system was successfully implemented while we continued to service our customers to their expectations. Our Bhagwanpur unit came on to full tax regime which used to get and the additional cash subsidy on local taxes paid. This resulted in a decrease in revenue from the plant. In respect of Odisha plant, we had a scheme of exemption from the state government on the sales made under Local VAT. The said scheme has been extended by the government of Odisha for another two years. However, the scheme relating to application and reimbursement of the same is yet to be notified.
Forex rates moved from 64 per USD as at March 31, 2018 to
74.5 per USD during November and then cooled off to 69.1 to close the year. This resulted in additional cost for imported raw materials. Our effective rate of tax at 24%.
GDP growth of the country had a positive impact on the demand in our industry. Indian GDP rose by 7% while our output grew by 11% in case of building products. This resulted in better utilization of our resources which had a positive impact on our cost of production and it will be sustained in years to come. In the Steel buildings segment, our growth was impacted by the sentiment of cautious optimism due to ensuing general elections and the generic rise in steel prices during the year.
In doing the above, we also took upon larger orders as a result of which trade receivables increased from 67 Crores to 97 Crores. These are usually within the credit period and would help the company realise its larger objective of growth.
The following ratios sum up the financial position of the company and the Improvements we made during the year.
|Cost of Borrowing (%)||6.1%||8.0%||8.2%|
|Debt to Equity||0.16||0.16||0.50|
|Collection Period (days)||26||19||29|
[ HEALTH AND SAFETY ]
At Everest we believe that health, safety and environment management go a long way in maintaining an organisations sustainability. The company has hence always demonstrated environmental and social responsibility at every step. Our objectives include complying with all applicable laws relevant to the industry. The management believes in sharing responsibility with even the entry level employees in conforming to the existing laws. Safety is a way of life at Everest and we take all precautions at our Pre-engineered building sites during installation. Further, safe work place practices are followed strictly at all our plant locations and erection sites.
There are many misconceptions about one of our raw materials asbestos. We use white asbestos (Chrysotile) fibre bound in a cement matrix while manufacturing AC Roofing. Chrysotile is a naturally occurring mineral, mined and imported in pallets from Russia. Since it is not sprayed, fibre emission is fully controlled. Fibre concentration in the atmosphere at our production facilities, is better than international norms and we ensure zero discharge of industrial effluent. Regular health check-ups for all of our employeesconfirmthe absence of any asbestos-related disease over decades of service. We ensure the highest level of safety for our employees and the community. Living and working under an Everest Roof is safe.
Our R&D has developed and introduced metallic and royal blue colours in coloured roofing sheets.
Alternate raw material mixes were introduced in Fibre cement board and Roofing sheets production to enhance the quality and optimize the cost. This resulted in improved usage efficiencies. The company continually focuses on research and development activities and has always had a philosophy of introducing new and improved products in the marketplace.
[ IT SYSTEMS]
We continue to make Everest digital. We launched a centralized IT support system bringing in transparency and visibility for all stakeholders. Going digital has its own data security risks. To prevent that, we have implemented a state-of-the-art security system across our network that blocks any threat coming from an external source.
In our pursuit for simplicity and empowerment, we have developed in-house mobile apps for all our stakeholders. All the information that is required by them is available on the app, thus allowing zero latency on account of data unavailability. This technology efficiency has helped in creating a transparent system, which is service first and not person first.
For our advanced technological solutions and out of the box thinking, Everest has been awarded multiple awards: 1. Data Security - Security Management - 2018 2. Data Centre Awards -2018 3. IDC Insights Awards 2018 Excellence in Omni-Experience
[ OPPORTUNITIES ]
India is witnessing a radical transformation, one that has never been seen before in living memory. There is an upsurge in the housing sector, supported by the Government of Indias encouraging policies, including the mission to provide Housing for All by 2022 and Real Estate (Regulation and Development) Act to enhance transparency in the real estate sector. These have been the game changers in the building material sector. A consistent increase in consumption is being witnessed in Tier-II and Tier-III cities, especially in sectors like offices, shopping malls, hotels, real estate and hospitals. Indias young and aspirational population, which has high disposable income and affinity towards credible brands, will drive a sustained demand growth for our products. Rising transparency levels, progressive regulations and a robust commercial real estate market in the country have made the segment a favourite among investors.
[ GROWTH DRIVERS ]
[ CHALLENGES ]
The father-daughter duo, Ajeet Bajaj and Deeya Bajaj, unfurled the Everest flag atop Mt. Vinson, thus telling us that there is no obstacle so high that cannot be surmounted.
Shortage of sand and skilled labour is pulling back on the growth potential of construction activity across the country. Weakness in export markets in Boards has impacted capacity utilization. Local production in Middle East has made the product unviable, therefore we have started focusing on supplying value added products.
We continue to face challenges on quality of erection labour, site conditions and underdeveloped logistics in the country. But these are all changing for the better.
With Indias growing economy, the preferences of Indians are shifting too. Government initiatives and thrust on housing for all by 2020 and
affordable housing is leading to significant improvement in lifestyle across Tier-II and Tier-III for aesthetically designed homes, generating sizeable scope for the Wood panel industry and providing new opportunities to grow as a segment.
The Wood panel industry plays an important role in the housing and construction sector. Therefore, the demand for Wood panels will grow with the development of the real estate segment. As the Government of India is focused on infrastructure, the wood panel industry is set to grow significantly. Besides, an increase in disposable income, rapid urbanisation and an emerging market for Fibre cement boards is expected to boost demand. With these growth drivers in place, Everest is focused on enhancing engagement with influencers (architects, interior designers) and build relationships with channel partners to grow this segment. Additionally, the company plans to continue its marketing and advertising ventures to strengthen growth.
[ HUMAN RESOURCES ]
HR Initiatives: Corporate HR has participated in CII HR Excellence Award Programme to assess the HR Practices. As a part of the programme the CII Assessors have assessed the HR Practices
andRecruitment: During the year we have recruited 163 Officers
29 Graduate Engineering Trainees. To nurture the young talent we have conducted Graduate Engineering Trainee Induction Programme at IIT-Roorkee and the faculty from IIT Roorkee has delivered the sessions.
Performance Culture: Performance Culture has been promoted across the organization by explaining the importance of goals.
To promote the performance culture HR has identified Lakshya
Champions to implement across.
Industrial Relations: Cordial Industrial Relations were maintained across all the manufacturing locations and the Long-term Wage settlements were signed at Podanur Works and Lakhmapur Works.
Rewards and Recognition: The Employee Stock Option Scheme for senior management grants them the option to acquire shares of the company. During the year, 217 employees got ESOPs of 1,70,000 shares. The employees are also rewarded for achieving targets under Everests Excellence Bonus Scheme. Loyalty is rewarded through the Long Service Award programme existent in the company.
To promote operational excellence among the manufacturing locations; Operation Championship Awards were awarded.
[ CORPORATE SOCIAL RESPONSIBILITY ]
Training and Skill Building
Enabling the development of latent skills can help build a "virtuous circle"the quality and relevance of education and training fuels innovation investment, technological change, enterprise development, economic diversification and competitiveness. Emerging economies can, in turn, leverage this synergy to accelerate the process of employment. To build skill sets across our intended target groups - adolescents, youth, women and marginalized construction workers among others Everest initiated skills training in computers, sewing and training on modern building techniques across various locations in order to directly benefit6938 people since its inception. Everest also collaborated with
GMR Varalakshami Foundation to provide residential vocational training. Everest mobilizes needy candidates around its business locations and sends them to GMRVF centres for quality residential skill training.
Everest has integrated its programme Roof Master Training and Skill Training for Board and Panel fabricators and made Building Master Training (BMT) as its flagship programme. BMT has an objective that "With expert training from Everest, marginal workers may train on modern building techniques and earn higher wages". Building Master Training was conducted in 25 locations across 20 districts in 5 States which benefited 643 people across all locations.
Everest partnered with National Skill Development Corporation (NSDC), Construction Industry Development Council (CIDC), Sattva and many other grass root level organizations to implement these training programmes. Everest is running Computer Skill Training Centers in association with NIIT Foundation and NSDC at Bhagwanpur (Roorkee, Uttarakhand), Kymore (Katni, Madhya Pradesh) and Remuna (Balasore, Odisha) and trained total 1090 people in said locations. Sewing Center is being run in Bhagwanpur (Roorkee, Uttarakhand) with NSDC who not only trained 150 women from local villages but also helped them to get employment or establish their own work. Career Guidance Center in Kymore (Katni, Madhya Pradesh) assisted 255 youth from local villages and showed them a career path.
Health, Hygiene and Sanitation
Public Healthcare in India is still in a state of flux. Rural areas continue to look for effective ways to make healthcare facilities available to vulnerable population. To that end during 2018-19 Everest initiated a Tobacco Control Programme in association with Salaam Mumbai Foundation (SMF) to make all 15 development blocks of Nashik totally Tobacco Free. Under the said programme 13,454 people were reached out and educated on ill effects of tobacco and ways to bringing change in habits.
The programme was conducted through awareness rallies and intensive training sessions were provided to government officials at block and village level, media personnel, government teachers, multipurpose health workers, police, NGO, cluster coordinators etc. Everest in partnership with SMF made another development block of Nashik named Niphad totally Tobacco Free. Last year Dindori development lock was made Tobacco Free.
Promotion of Sports
More than 85% of school children in India have no access to sports due to a lack of adequate facilities. Less than 10% of the population under 35 years of age has access to organized sports. An equally small percentage of youth have access to playgrounds.
Everest seeks to provide a platform for rural youth and children where they can demonstrate their sporting capabilities and acquire skills that can help them live a healthy and progressive life. To facilitate this, we organized various local and community-level sporting events and training programs at our plant locations in which total 784 people participated.
In 2018-19, Everest organized various national sport tournaments in its plant locations for local community. A Football coaching workshop and tournament was organized at Podanur (Coimbatore, Tamil Nadu) wherein youth/kids (including girls teams) from nearby villages participated, total 103 youth were part of regular training programs while 480 people participated in District level Football Tournament in association with Coimbatore District Football Association (CDFA). Everest also organized a Badminton Tournament at Kymore (Katni, Madhya Pradesh) for the rural youth/kids in which 201 people participated.
Environmental Sustainability and Community Building
Everest believes in maintaining green and sustainable environment and mitigating environmental challenges. To that end, we pursue the practice of planting saplings in various areas across our sites and the lands allocated by the Government Departments/Authorities. Through multiple plantation drives thousands of saplings were planted at government schools, hospitals etc. In other Community building programs, Everest has responded during the flood disaster in Kerala and undertaken various initiatives to help local community by providing construction materials to more than 178 families to renovate their houses, helped 51 old age inmates to rehabilitate their shelter home by providing the materials i.e. new furniture, electronic devices, appliances, medical equipment, renovation cost of building etc. and also supported individual families to restore their small shop to regain their income source.
Individual Social Responsibility (ISR)
Every member of the Everest team is motivated, skilled and adds to the strength of the company. Their large-heartedness allows them to willingly share their time and talent with others to build a better, stronger and safer community.
The fact that giving back is intrinsic to our company culture is evident from the system which encourages each employee to contribute at least four man hours in a year for community-driven initiatives. Our efforts have included the creation of several employee engagement opportunities which have been a success with employees contributing towards various activities such as sensitization drives on No
Tobacco Day, sensitization on workplace preparedness for women etc. Employees are also visiting skill-centers and sport projects to impart sessions on digital literacy, e-marketing and new technologies, importance of education on individuals life, employment trend in India and benefitsof team work and career related subjects. Participating in various giving activities i.e. Food Donation Drives, Joy of Giving-fulfilling the wishes of less privileged children, plantation drive,
International womens day, Vastra Daan etc. Employees also take part in organizing various CSR activities voluntarily i.e. sport tournaments, awareness and counselling sessions etc. In 2018-19 total 1079 employees participated in above said ISR activities and contributed 2065 man-hours for Social Change.
Building Nation Through Skills
India is one of the fastest growing economies in the world and going through massive industrialization and infrastructure development. However, India has been facing a large gap in the demand and supply of skilled workforce. It is also estimated that alone in Building and Construction sector shortage of skilled manpower till 2022 would be 33 million. Everest performed consultation process with various stakeholders in construction sector and found that there is a huge capacity gap in job works related to structural fabrication, erection of roof sheets, building products and other construction works. It is observed that enhancing their skill set would help these marginal construction workers to increase their daily wages by almost 40% to 60% apart from creating more employment opportunities for them. This led to the initiation of the project Roof Master Training Programme in 2015 to train semi-skilled construction workers in structural fabrication and, roof sheet installation. Later in 2017 one more programme SAKSHAM was designed and developed to train semi-skilled workers in installation of boards, solid wall panels, cladding, fall ceiling and flooring. In 2018-19 both programmes were integrated to give holistic training to semi-skilled construction workers which will help them to enhance their skills and income. The integrated programme named as Building Master Training aims that "With expert training from Everest, marginal workers may train on modern building techniques and earn higher wages". In 2018-19, the Building Master Training was conducted in 5 states, 20 districts and 25 locations and trained 649 people.
Odds stacked against him to get success, firm determination paid him back
Ritan Kumar Swain,
Balichandrapur, Jajpur Odisha.
Ritan is 10th pass and resides with his family of 5 members. Due to lack of financial support, he dropped out himself from education and started working in Jindal Steel on daily wage. The income of
5,000-7,000/- per month was not adequate to fulfill his daily basic family needs. Everests Building Master Training programme was being organized near to his village. He participated, acquired skills and became a certified Building Master.
Now, Ritan has opened a fabrication shop. He is the only skilled fabricator providing services to the customers in his area. Today, Ritan earns approximately 16,000 per month which is almost double than what he was earning previously.