COCHIN SHIPYARD LIMITED

COCHIN SHIPYARD LIMITED

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Taking CSR to New Heights

Cochin Shipyard Ltd, a shining star among the galaxy of best performing Public Sector Enterprises in India. CSL has today emerged as one of the top integrated marine building, repair and training services players in the country and the most respected commercial and defence ship and offshore structure building facility. Company has passionately adopted CSR and Contributed in sectors including Integrated Community Development, Technology Development, Rural Development etc.

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Cochin Shipyard Limited(CSL), established in the year 1972 as fully owned government of India company has built the largest ship, a 93500 DWT Double Hull Crude Oil tanker for Shipping Corporation of India and is now constructing the Nation’s most prestigious defence project namely the first Indigenous Aircraft Carrier. This new aircraft carrier has been designed by the Directorate of Naval Design, Indian Navy and is built by CSL. India is the fifth nation in the world to design and build an Aircraft Carrier of this size. The company is also presently building 20 Fast Patrol Vessels for the Indian Coast Guard. CSL has exported 40 high tech ships, mainly offshore platform vessels, in the last decade to discerning clients in Europe and US. “Cochin Shipyard Limited’s most important contribution to Indian shipbuilding is that it has established brand India as a reliable and quality conscious manufacturer of ships in the global scenario,’ says Commodore K Subramaniam, Chairman and managing director, Cochin Shipyard Limited.

Cochin Shipyard is also the leading ship repairer in the country. Cochin Shipyard has undertaken repairs of over 1800 ships of all types over the last 32 years. CSL has an enviable reputation for quality and timely delivery of vessels. CSL is the only yard that has been undertaking underwater repairs to the existing aircraft carrier of the Indian Navy, INS Viraat. The yard has also successfully undertaken afloat repairs to jack up rigs of ONGC and foreign clients. The shipyard also trains marine engineers for the mercantile fleet. The Marine Engineering Training Institute run by CSL has been consistently graded ‘excellent’ by the Credit Rating Agency since 2004.

The forty two years old organization has several achievements to its credit. However, the launching of the first indigenously built aircraft carrier-Vikrant on 12 August 2013 was the most defining moment. The focus of the entire world was on India. CSL was able to stand up to the expectation of this great country and it was certainly the proudest moment for every person in the company when Vikrant was floated at CSL. Very few countries have constructed an aircraft carrier of this size.

Having created success stories in the ship building and ship repairing space, the company is on steady growth path. CSL has posted excellent financial results for the several years. The turnover has increased nearly five times from Rs.374 crore in 2005-2006 to Rs.1637.45 crore in 2013-2014. The profit before tax increased by twelve times from Rs. 25 crore to Rs. 290.95 crore and net profit by eleven times from Rs.18 crore to Rs.194.24 crore during this period. The Company has been regularly paying dividend for the last several years. CSL is financially robust and almost a debt free company”, informs Subramaniam. “We have achieved this growth at a time when the industry is passing through one of the worst even downturn, which has lasted almost eight years. CSL has drawn its resilience from diversified operations, quality skills and state-of-the –art technology,” adds Subramaniam.

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Vision

  • Emerge as an internationally preferred shipyard to construct world class Merchant and Naval ships, offshore vessels and structures
  • Be the market leader in India for ship repairs, including conversions/ up-gradation.
  • To be admired for our achievements, respected for our ethics and trusted for our service excellence by our valued customer.

 

Mission

  • To build and repair ships and off-shore structures to international standards and provide value added quality engineering services.
  • Sustain corporate growth in competitive environment.
  • To adopt and undertake practices towards becoming a responsible corporate citizen.

 

CSR Profile of CSL

CSL continues its journey as a responsible corporate citizen in the country in terms of quality of products and services, ethical conduct of business and more importantly by giving back to the society. Benefitting its status as a leader in the shipbuilding and ship repair industry, CSL has adopted a vision for its CSR initiatives. CSL has initiated several CSR and Sustainability projects, adhering to CSR and Sustainability Statutes and Guidelines of Government.

The CSR interventions of CSL have become an effective vehicle which carries the positive corporate image of the organization among its internal and external stakeholders. This has also boosted the image and goodwill of the company and is also a driving force for its employees who take pride and ownership of being part of a responsible corporate organization. The employees of CSL are keen on the CSR agenda which is reflected in their active involvement in the implementation of these projects and also in their own self-motivated efforts to render support to the less privileged fellow citizens.

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CSL has identified and sanctioned 94 minor and major CSR and Sustainability projects with a total outlay of Rs. 17.44 crore starting from the year 2010. Out of these, 80 projects have been completed and 14 are in progress. The Cochin Shipyard’s CSR Board Level Committee is  the apex controlling and monitoring body for CSR and Sustainability projects of CSL ably supported by a Below Board Level CSR Committee and a dynamic team of CSR professionals. These focused CSR projects spread across all the thrust areas of CSR  interventions like quality of life improvement especially of the less privileged citizens, health, education, community development, capacity building , green technology and so on. Apart from the tangible positive impact on the environment, approximately 25000 individual citizens are benefited from these CSR sustainability projects of CSL.

Area of Business

Shipbuilding – Commenced in 1975

Ship Repair – Commenced in 1981

Marine Engineering Training – Commenced in 1993

Manpower

Total No. of Permanent Employee-1863      

Contract Employees -700-2000

Geographic Spread

  • Most experienced Indian shipyard in commercial ship building and ship repair.
  • Highly skilled labour force and an evolved sub contract eco system.
  • Harmonious Industrial Relations environment.

Growth

  • The largest and the most modern PSU Shipyard in India.
  • Incorporated in the year 1972.
  • Front-runner in the Indian Shipbuilding and Ship Repair Industry.
  • Builders of the first Indigenous Aircraft Carrier of India.

 

Strong Social Focus

Some of the major CSR and Sustainability projects undertaken by CSL are listed below:

  • A Mobile A/C Safety Training Class Room to give in-situ safety training to un-organized and small scale sector workers and to students at their schools. The Facility is managed by Factories and Boilers Department, Government of Kerala.
  • Prime Partner to the 20 Bedded Regional Dialysis Centre, Aluva, Ernakulam District. The Centre gives free/concessional rate dialysis to poor kidney patients.
  • A Hostel for 100 Tribal Students studying at a Vivekananda Residential Tribal School, Wayanad, Kerala.
  • Prime Partner to 1.5 T MRI Scan Centre functioning at General Hospital, Ernakulam.
  • Infrastructure Development to a Government Lower Primary Village School at Ernakulam District by providing smart class room, physics and mathematics lab, playground, assembly hall, ceiling for class room, conveyance etc.   
  • Constructed a new residential building for 35 women inmates of the Home for the Destitute at Cochin which provided safe and comfortable accommodation to them. 
  • Provided solar based lighting to the houses of  75 tribal families by providing standalone solar power units  at Kunjipara, a tribal settlement in the high ranges of Ernakulam District. This support made tremendous positive impact on the quality of life to these otherwise hapless citizens.
  • Support to the patients of General Hospital, Ernakulam for efficient functioning of Palliative Care services, providing free one time meal to the by-standers, solid waste treatment facility etc.
  • Constructed Training cum Cultural Centre for Om Sivananda Pullaya Samajam at Ayyamppilly, a coastal village mostly inhabited by SC population. The centre aims to train the housewives and unemployed girls in the area in livelihood enhancement skills and also provide tuition for the children of the residents of the locality mostly belonging to the SC community.
  • Provided 17 motorized three wheelers and 100 ordinary wheel chairs to differently abled persons.
  • Constructed a Multi-purpose Community Centre at Cheranellur Panchayat. 
  • Extension of building for Swami Vevekananda Medical Mission Hospital to house a full-fledged operation theatre, labor room, maternity and neo-natal ward etc. The hospital gives treatment at nominal rates to the tribal population of Attappady, an undeveloped tribal belt in Palakkad district of Kerala. 
  • Drinking Water Supply Scheme for 750 families, mostly SC population, at Ambadimala in Chottanikkara Panchayath in Ernakulam district.
  • Infra-structure development and value adding machinery to Sangamaithri Farmers Producers Company Limited, Pallichal, Thiruvananthapuram. 5000 plus small farmers are beneficiaries of the project. 
  • Erection of a permanent dedicated stage for training and performance of an aboriginal coastal art form called “Chavittunatakam”, action packed dance drama performance based on religious themes performed by mostly fishermen folk.
  • A Speed Boat ICU Ambulance for the benefit of the islanders of scattered islands at west Cochin area which are not connected by roads for  access to hospitals in cases of emergencies. 
  • Additional building for Adarsh Charitable Trust Training Centre for Differently Abled Persons at Chottanikkara Panchayath.
  • Installation of 60 Kwp on-grid solar power stations inside CSL as a voluntary sustainable development project.
  • Additional building for Sree Ramakrishna Mission Hospital, Thiruvanthapuram.

The way forward

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For CSL, CSR is a way of conducting its business. CSL has put in place a robust CSR Policy with an objective of making CSR a cell in the DNA of all it’s stakeholders. Commensurate with the national requirement, CSL wishes to undertake major CSR projects which would bring in tangible impact and difference to society and environment in the coming years.

At the business front, CSL is all set for a quantum leap by tapping both internal and international maritime and defense potential. CSL would continue to remain the biggest and the best shipyard of the Nation taking India’s share in international shipbuilding market to a considerable level of reckoning.  CSL is the flagship shipyard of the country in its march of progress with ‘make in India’ slogan.

CSR Initiatives

Cover Story (11) Cover Story (10)Integrated community develop-ment— Providing nutritious food to inmates of approved orphanages, home for the aged/differently abled,  relief camps, destitute homes, poor inpatients and their bye-standers at Government hospitals, poor students studying at Government or Government aided schools. Support for building houses for the homeless and destitute, slum dwellers etc. Setting up of primary and secondary health centres, conducting free medical camps, orphans, treatment support to poor critically ill patients and BPL category women and children, palliative care support, providing required support to Government and identified Non-Government Organizations towards enhancement of  treatment and diagnostic facilities for the poor and at the backward areas. Providing sanitation, hygiene and civic amenities and facilities for the identified people and at identified places. Making available safe drinking water to the identified areas and people. Extending industry specific expertise and support to community oriented projects like building or help building or repairing water transport system for  public at large on the principle of ‘shared value’. Eg. Providing design or technical consultation and or funding construction of passenger boats, ferry boats, rescue vessels, ambulance boats etc.

CAPACITY DEVELOPMENT

Economic and social empowerment of the marginalized sections of society— Supporting women’s self help group or co-operative society by providing seed money and or infrastructure facilities towards their livelihood enhancement. Setting up or supporting homes and hostels for women, orphans, old aged, day care centers for children and senior citizens. Setting up or supporting self employment or common employment generation facilities or programmes for the socially and economically backward groups. Conducting or sponsoring training and awareness programme or campaign among the citizens on socially relevant concerns like drug abuse, alcoholism, suicide, atrocities on women and children, safety, security, atrocities against animals etc. Partnering with those projects or programme targeted for women, children, differently abled persons, old aged ones, economically and socially backward citizens etc.

Sustainable development— Patronizing and funding those projects or programmes towards sustainable development in general. Supporting and promoting renewable energy eg. Solar, wind energy generation projects and activities without any geographical restrictions including those voluntary sustainable development initiatives undertaken by CSL within its premises.  Promoting scientific waste management practices. Promoting product re-cycling process and usage of bio-degradable raw materials for consumer products. Promoting tree planting, home cultivation of vegetables and organic farming. Supporting rain water harvesting, reverse osmosis or desalination water treatment, conservation of natural water resources etc. both within and outside CSL premises.

Protection and promotion of traditional arts, culture, heritage, handicrafts etc— Identifying and reviving those arts and traditional cultural performing arts which are becoming extinct. Supporting establishment/revival/renovation public libraries and such value adding public utility services. 

Protecting heritage structures and buildings— Supporting upkeep and preservation of heritage buildings and structures.

Outreach to ex-servicemen community and their dependants— Supporting those projects or programmes for the benefit of armed forces veterans, war widows and their dependants.

Promotion of sports and games— Supporting or sponsoring rural sports, nationally recognized sports, Paralympics sports and Olympic sports etc.

Contribution to Prime Minister’s National Relief Fund or such Government of India Fund— Contributing to Prime Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women.

Technology Development— Supporting research and development initiatives such as technology incubators located within academic/research institutions approved by the Central Government.

Rural development projects— Supporting agriculture development initiatives undertaken by agencies like farmers’ co-operative societies, producers’ company etc. Providing or sponsoring value added measures or facilities for agricultural products. Partnering projects for preservation of agri-products, marketing infra-structure for agri-products, irrigation for farming, training of farmers etc. Building roads, bridges, rural health centres, schools, day-care centres etc in the rural areas. Supporting safe drinking water distribution system in the rural areas.

CSR- MANAGEMENT STRUCTURE

SL shall put in place the following three tier management system for its CSR Policy implementation

The Board of Directors (Tier- I) – CSL CSR Board Committee for CSR (Tier – II) – CSL CSR Executive Committee (Tier – III)

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CSR FUNDING

  • The Board of Directors of CSL shall allocate and approve appropriate amount as applicable from time to time to CSR activities. The CSR Budget could be under the following heads:
  • 80% towards major CSR Projects with project outlay of more than Rs 10.00 Lakhs.
  • Up to 10%  towards minor CSR Projects with project outlay of less than Rs 10.00 Lakhs.
  • Up to 10% towards administrative or indirect expenditure related to CSR implementation.
  • Ideally, the amount so allocated and approved by the Board shall be   transferred during the first week of April every year to a dedicated Corpus Account or to the Trust/Society promoted by CSL.
  • The un-utilised fund, if any of the relevant year shall be carried forward to next year.

Financial Performance

  • Consistently recorded profit since 1993 and paid dividends.
  • Posted excellent financial performance in 2013-14 achieving a Net Profit of Rs. 194 Crores.

In Future

  • Poised for expansion into the fields of VLCC, Gas Carriers, Off-shore Structure Construction.
  • Construction of a large size Dry Dock at Cochin cleared by Govt. of India.
  • Plans to install most modern ship facility at the proposed ISRF at Willingdon Island, Cochin, India.
  • Strengthened marketing efforts for tapping the futuristic ship building market, both defence and commercial in India and abroad. u

Company structure

Board of Directors & Governance

Independent Directors – Shri M Raman, IAS, (Retd.) , VAdm S K K Krishnan (Retd.)

Former CMD , MDL, Shri N Raghuram,
Dr S Mohan

Former Director , BPCL
Practicing Chartered Accountant, Dr G C Gopala Pillai
Former CMD , FACT

 

Whole Time Directors – Cmde  Kartik Subramaniam
Chairman and Managing Director , Capt R S Sundar
Director (Operation), Shri Paul Ranjan
Director (Finance), Shri Sunny Thomas
Director (Technical)

 

Official Part Time Directors – Shri Elias George, IAS
Nominee Government of Kerala

Senior Management

Shri N V Sureshbabu, CGM(SR) Occupier of the factory

Shri  Madhu S Nair, CGM (Business Development)

Shri Bejoy Bhaskar CGM (Defence & Defence Projects)

Shri M Murugiah,GM (SB) Factory Manager

Interview with

Commodore Kartik Subramaniam, CMD – Cochin Shipyard Ltd.

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Commodore Kartik Subramaniam is a professional a go getter and an excellent team player. His presence in the organization is felt quite aloud. He is a very friendly person and a great professional with blend of great leadership skills yet humble in his approach.

 

 

 

CSR VISION: Firstly, we would like to know something about your journey in Indian Navy and which was your most adventurous moment offshore?

Kartik Subramaniam : My journey in Indian Navy was very enriching and satisfying.  Though I did not have any momentous or adventurous moment offshore like what one faces at warfront or in the turbulent sea, life in Navy is always demanding in terms of physical and psychological alertness and fitness. For what I am today, I am greatly indebted to my alma-mater, Indian Navy. 

CSR VISION: How do you assess the success of Cochin Shipyard Ltd. in Indian market in comparison to other shipyard Domestic as well as International?

Kartik Subramaniam : I am glad and equally proud to state that Cochin Shipyard Ltd is the best shipyard in the country in all respects. The facts and figures pertaining to the success story of this vibrant shipyard stand testimony to what I state. In terms of quality, productivity, profitability, net worth, delivery, industrial relations, CSR performance, and capacity utilisation etc. no Indian shipyard matches Cochin Shipyard.  In spite of the negative trend in global shipping industry and typical Indian constraints, our performance is comparable with overseas yards. The fact that we have exported more than 40 ships to overseas owners including to Europe and US speaks volume for our customer satisfaction and international acceptance level.  We continue to bag overseas ship building orders amidst tough international competition. 

CSR VISION: Which are the key CSR activities of Cochin Shipyard Ltd. in India?

Kartik Subramaniam : Our focus on the CSR stage is on people especially those belonging to the underprivileged or marginalised sections of society.  We provide support to them by way of health improvement interventions, supporting differently abled persons, destitute senior citizens, SC/ST communities, women empowerment and child development. We concentrate on infrastructure development mode like providing shelters to the destitute senior citizens, orphans, installing MRI Scan centre, Dialysis Centre, Solar Lighting systems, providing Mobile Class Room, Ambulances, building Hostels, Community Centres etc.  Under Sustainable Development, we have installed solar power plants, Reverse Osmosis water purification plants, waste treatment plant etc. both within and outside shipyard premises.

CSR VISION: How do you compare the CSR activities of CSL in India in comparison to other companies in your domain?

Kartik Subramaniam : CSL as an organization aims at excellence of service. Towards this we are keen to identify those CSR initiatives which are sustainable solutions to the felt needs of the people. For example, the MRI Scan centre  sponsored by the Shipyard and others has proven to be the first of its kind in India with tremendous reach to the poor patients who are otherwise denied access to modern  and expensive medical diagnostic  procedures. The project with a total installation cost of Rs 500 Lakhs is a convergence of CSR and MP’s Local Area Development Fund. Similarly, the Regional Dialysis Centre functioning in a Government Hospital is yet another example of how the synergy of CSR and participation by the likeminded individuals and institutions can be most supportive to the economically poor people.   The Board of CSL makes sure that we put our heart and mind to whatever CSR activity we do.

CSR VISION: Out of all CSR activities / projects you are undertaking in India, which one you consider to be making an indelible impact on the national development scene, if any?

Kartik Subramaniam : We are convinced that our efforts have contributed greatly in improving the quality of life of the beneficiaries which is evident from the reports that we get from them. Among the numerous CSR projects undertaken by us, the ones we did for the tribal population at the backward district of Wayanad in Kerala by way of constructing a 100 students capacity hostel for the tribal students of Vivekananda  Residential Tribal School, the MRI Scan Centre functioning at General Hospital, Ernakulam catering to average 30 poor patients per day and setting up dedicated dialysis centre at Government Hospital, Aluva  which has resulted in giving a new lease of life to marginalised sections of society , have gone long way in national development scene.  Reaching solar light based electricity to 75 tribal houses in the remote hilly area did produce conspicuous positive change in the life and attitude of the targeted beneficiaries.

CSR VISION: How do you measure the impact of your CSR activities?

Kartik Subramaniam : We normally undertake major CSR projects on the basis of a baseline/need assessment survey. Projects are periodically evaluated against the objectives stated in the baseline survey report. Impact assessment is done after a gap of at least 3 months from completion date by collecting feedback from the beneficiaries and analysing results with facts and figures.

CSR VISION: What is the profile of employee involvement in CSR activities at Cochin Shipyard Ltd.?

Kartik Subramaniam : Employees being the internal stakeholders do take active involvement in the implementation of CSL CSR Policy. They are kept on the loop by conducting awareness program, encouraging them to come out with viable proposals for CSR, involving them in conducting the need assessment, engaging them for project monitoring and periodic evaluation etc. They take pride and get inspired in identifying themselves as employees of a responsible organization.  Their concern for their less privileged fellow citizens are manifested in their  self-motivated  philanthropic gestures like providing medicines to the poor cancer patients, blood and organ including stem cells  donation drives, providing provisions and meals to the nearby orphanages and old age homes etc.

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CSR VISION: How does CSL respond to the provisions under section 135 of the companies’ act 2013?

Kartik Subramaniam : CSL, being a fully owned CPSE has been in the CSR track even before the implementation of new Companies Act 2013. CSL Board has already adopted a robust CSR Policy and constituted Board Level and Below Board Level CSR Sub-committees. CSL has a full-fledged CSR Cell manned by CSR experienced professionals. CSL allocates minimum 2% of its net profit as CSR budget every year. CSL signs annual MoU for performance evaluation with Government of India in which 3% to 5% weightage is assigned for CSR performance.

CSR VISION: In leading global companies, the CEOs devote almost equal time and attention to their role, of CSO (chief sustainability officer) at par with their role of CEO. What is your level of involvement in CSR as the CSO with relation to your role as Chairman and Director?

Kartik Subramaniam : CSR being one of the effective business strategy tools, I try to dedicate considerable time and effort (not necessarily 50% of my time) towards successful implementation of CSR activities of the company.

CSR VISION: Do you consider CSR spend as EXPENDITURE or an INVESTMENT, please clarify your opinion?

Kartik Subramaniam : I consider CSR spend as an INVESTMENT rather than an EXPENDITURE, primarily because expenditure does not always give  one reciprocal return, but all investments    produce some small or big returns to the investor, may be small or big, immediate or in the long term.  In the case of all CSR projects, there is a common element of return, howsoever miniscule it may appear to be. Of course, it may not be tangible or measurable from the organization point of view. But all well identified and implemented CSR projects bring back glory to the organization in terms of goodwill and positive corporate image. The reputation of being a people and environment friendly corporate citizen produces tremendous business advantage and inspirational impetus and heightened morale for human resources of the organization.  All CSR activities have a positive impact on a section of society and improve quality of lives. That is most important!  u

Capital and Engineering Talent have been 
Flocking to CSL to Fulfill ‘Make In India’ Campaign.    
  

 

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About the author

CSR VISION
CSR VISION is India's (probably World's) first monthly magazine in print devoted to CSR and Sustainable Development for bringing together all stakeholders of SUSTAINABLE DEVELOPMENT at a global and local levels and act as a platform for promoting strategic CSR and sustainable development practices through dissemination of information and knowledge.