A Technology giant using its core competence for CSR impact. Much more expected…
Siemens is one of the most prominent brands of the world in the domain of engineering excellence, innovation and reliability. With a turnover of around `114,000 million and a global giant, the potential for making an impact through CSR, using its financial and technological capabilities is huge.
However, the profile of CSR stories of Siemens India makes a good reading primarily because it utilizes its core competence in making an impact on the ground and exhibits its commitment to CSR through strategically aligned CSR projects.
With a focus on electrification, automation and digitalization, Siemens stands for engineering excellence, innovation, and reliability. As one of the worlds biggest producers of energy-efficient, resource-saving technologies, Siemens is a pioneer in infrastructure and energy solutions, as well as automation and software for industry. Siemens also provides business-to-business financial solutions, rail automation and wind power solutions. Siemens long-term commitment in India began in 1867, when Werner von Siemens personally supervised the setting up of the first telegraph line between London and Calcutta. Today, Siemens has 22 factories and over 50 offices located across the country.
DIVISIONS & PRODUCTS
Offers software products and automation technologies for industrial applications covering the entire life cycle, from product design and production to after-sales service for discrete manufacturing industries such as automotive, F&B.
Products and solutions
Automation systems, Industrial control, Industrial communication, LV and MV Drives, Geared motors, Motion control, CNC solutions, Low voltage switchgear for switching, protection and control, PLM software and services.
Process Industries and Drives
Offers a comprehensive portfolio for industrial application and solutions in the field of automation and drives for process industries such as cement and steel etc.
Products and solutions:
Process automation, Integrated Drive Systems (IDS), Sensor systems, Plant engineering software, LV motors (upto frame size 560), MV motors (upto frame size 630), Traction motors, Mechanical drives, Windmill generators (= 1875 MW), Gear boxes.
Building Technologies Division
Provides solutions for safe, secure and energy-efficient infrastructure and buildings.
Products and solutions:
Building automation systems, HVAC products, Building control, Security systems, Fire safety systems, Energy efficiency systems, Total Building Solutions, Integrated systems and solutions for specific markets and industries such as data centers, utilities, airports, hospitals and hotels.
Power and Gas Division:
Offers products and solutions for reliable, efficient and clean power generation from fossil fuels and for oil & gas applications.
Products and solutions: Offers a broad spectrum of products and solutions for reliable, efficient and clean power for generation of electricity from fossil fuels and for the reliable generation of power for oil and gas as well as for industrial applications.
Energy Management Division
Provides solutions for the development of intelligent, digitally-managed power transmission and distribution infrastructure.
Products and solutions
Range of high, medium and low voltage products and solutions address the challenges of the energy system in three areas: connecting grids to meet complex requirements for power transmission, creating agility in energy for smarter grids, system stabilization, new business models and optimized energy trade and enabling safe, reliable and efficient power supply of industries, buildings and facilities with Totally Integrated Power.
Supplies solutions for passenger and freight transportation, including rail vehicles, rail automation and rail electrification systems.
Products and solutions: Propulsion systems, Inverters, Rail Signaling, Rail electrification, Rail automation, Intelligent Traffic Management, Light Rail, Metro Rail, Passenger coaches.
VISION, MISSION AND VALUES
To be the pioneer of our time thats the vision that motivates us in everything we do.
Responsible – Excellent – Innovative – have been the basis for Siemens success for over 160 years.
- Responsible means that we are committed to ethical and responsible actions.
- Our excellence is based on achieving high performance and excellent results.
- We choose for innovation to create sustainable value.
We make real what matters by setting the benchmark in the way we electrify, automate and digitalize the world around us. Ingenuity drives us and what we create is yours. Together we deliver.
SALES TURNOVER, GROWTH, EMPLOYEE STRENGTH, GEOGRAPHIC SPREAD
- The Turnover of the Siemens Limited, the flagship listed company of the Siemens group in India company was `113,483 Million for the year ended 30th September 2017 as compared to `112,295 Million in the previous year. The Companys Profit from Operations for the year ended 30th September 2017 was `8,546 million as compared to `7,940 million in the previous year.
- >Today, Siemens has 22 factories, 50 offices as well as sales and service teams located across the country. In India, Siemens employs more than 23,000 people.
COMPANY STRUCTURE – OWNERSHIP, HEAD QUARTER, GLOBAL OPERATION PROFILE
Siemens Limited, the flagship listed company, is 75% owned by parent company Siemens AG, headquartered in Munich and Berlin.
COMPATIBILITY OF BUSINESS MODEL WITH GOVERNMENT PROGRAMS
- By connecting hardware, software and data, Siemens makes Indian industry more efficient and globally competitive.
- Siemens has developed comprehensive Digital Fleet Center Solutions. This solution enables power plant fleet operators to seamlessly connect their power generation assets (turbines, generators, boilers and balance of plants), and leverage the power of vast amount of data generated by these machines.
- Working with the Northern Region Load Dispatch Center, Siemens replaced the old power system with an innovative hardware and software solution. The new system features eight State Load Despatch Centers, one Regional Load Despatch Center, and three backup control centers. The seamless and speedy takeover of this new platform was implemented without any interruption to grid operations. It benefits about 30% of Indias population.
- Siemens has signed a Memorandum of Understanding with the Confederation of Indian Industry to be the Lead Industry Partner in a consortium, for the conceptualization and development of Smart Cities. They also signed a MoU with IL&FS and GIFTCL to develop Smart Mobility Solutions for GIFT city. Siemens offerings are in tune with governments vision of 100 Smart Cities.
- In 2017, Siemens opened its first digital factory in India, also the third globally after one each in Germany and China, as the industrial conglomerate pitches smart facilities to small and medium scale enterprises in the country.
ESSENTIAL FEATURES OF CSR STRATEGY OF SIEMENS INDIA
- Siemens CSR policy is governed by the Corporate Citizenship Strategy which focuses on integrating community development issues with business strategies to leverage the Companys core competencies while addressing community needs.
- The policy has seven focus areas under three main pillars Education, Environment and Social under which various initiatives are undertaken.
CSR ACTIVITIES OF SIEMENS INDIA
ENHANCING LIVING CONDITIONS
Project Asha aims at improving living conditions using inclusive and sustainable technology through integrated rural development. The project focused on improving lives in 17 villages of Mokhada, Palghar and 15 villages in Aurangabad Division in Maharashtra through interventions in education, healthcare, sanitation, water conservation, energy, livelihood and governance. The Project is implemented by AROEHAN – field action project of Nirmala Niketan Institute, College of Social Work along-with CTARA-IITB as technology partner.
MOKHADA AND ACTIONAID ASSOCIATION IN AURANGABAD DIVISION
The MOKHADA project focused on watershed development for making drinking water available and water for irrigation. Till date, 38 million liters water has been made available by Rain water harvesting which benefitted the livelihood in 17 villages, and 5 villages are now tanker free. Installation of water filters in 11 villages have benefited in reduction water borne diseases by 80%. Earlier the community relied on Paddy and Ragi crops, which was for mere family consumption. With the availability of water, vegetable cultivation in Kharif season has been introduced. A total of 600 acres of arable land is bought under irrigation.
Siemens has established a long term commitment with ActionAid Association to support severely drought affected areas since 2013 in Badnapur taluka, Aurangabad division. The project that was initiated as drought mitigation in 5 villages has now been scaled to 15 villages and aims to enhance living conditions of these villages through integrated development using sustainable & inclusive technology which is both scalable & replicable.
PROMOTION OF EDUCATION
SIEMENS SCHOLARSHIP PROGRAM
The Siemens Scholarship Program endeavors to support and promote technical education. Launched in 2013, it is a merit cum means scholarship to engineering students studying in Government Colleges hailing from lesser privileged background. The scholarship consists of tuition fees and holistic development of the students across the 4 years through soft skills workshops, technical and functional trainings. It is based on German Dual Education model so as to make them industry ready. From 2013-2017, the program coverage has reached to 285 students across 47 colleges and 29 States. The first batch of the Siemens Scholarship program students graduated this year. They were offered placements in reputed companies. 50% of students of Batch II who are in their final year have been already placed. The program offers holistic development of the students over a period of 4 years during which they are exposed to advance technical training, internships for practical application of the classroom knowledge, soft skills and cross-functional skills. This year 110 students completed their internships at Siemens Ltd. across its 13 locations. The students were introduced to hands on experience in technical skills in varied projects during the internships. In addition to the technical skills, sessions on functional skills such as ethics, quality, manufacturing processes, EHS and finance were also incorporated during the tenure. The Batch I and Batch II students also successfully completed the Siemens Mechatronics System Certification Program. Soft skills workshops on communications skills, time management, presentation skills, goal setting, etc. were conducted to develop students holistically.
DUAL VET AT GOVERNMENT ITIS
Currently, a huge gap exists between the need of the industry for an employable work force and the capacity of the skill development programs. In line with the focus area of promotion of science and technical education and to support the National Skills Development Policy of the Government of India, Siemens Ltd. has partnered with Tata Strive to support the up-skilling of trainees in the government training institutes for skill development by implementing the Dual VET pedagogy. According to the Annual Report(2017) of Siemens Limited, the German Dual VET is based on learning, interlocked with theory and workshop, augmented with soft skills like communication skills, presentation techniques, public speaking skills, cost planning, project management, team work, decision-making ability, handling responsibility, conflict resolving & business games and creative technique to develop future oriented capable workforce and personal thinking and learning geared to business and professional personal development. The German Dual VET model focuses on the need of the Micro, Small and Medium Enterprises (MSMEs), industry practices and training of trainees. As compared to the traditional model of 2 years Craftsmen Training Scheme and 1 year Apprenticeship, the German Dual VET within the traditional model proposes 1 month of in-plant training in first year, 2 months in the second year in addition with 9 months of paid apprenticeship in the third year for overall, holistic hands-on practical experience with theoretical knowledge. MoU was signed with Directorate of Training and Technical Education (DTTE), Delhi state for all Govt. ITIs of Delhi State to roll out the Dual VET program. Currently, the Company is implementing Electrician Trade in 12 ITIs. A total of 314 Students, 33 MSMEs and 50 Instructors were inducted in the program this year.
MACHINE TOOL OPERATOR TRAINING
In the endeavor to advance skill training and to support the provision of highly skilled technicians for the Manufacturing Sector, Siemens has tied up with several Government ITIs and Advance Training Institutes (ATIs) in the country. Currently 5 such Institutes are being piloted for the project. The project covers the following: – Retrofitting old Computerized Numerical Control (CNC) machines at the above mentioned Institutes with the latest SINUMERIK controllers and Drive Systems – Installations of SINUTRAIN (Computer based CNC Simulation) softwares at the Institutes. The trainees of these Vocational Institutes first extensively test CNC programs on SINUTRAIN before working on the actual CNC machines.
DUAL EDUCATION FOR MANAGEMENT STUDENTS
Siemens launched a scholarship program to support Dual Education amongst meritorious less privileged management students to make them Industry Ready. Under this initiative, Siemens supports 12 students annually with Scholarships, Awards and Internships who are pursuing Post Graduate Programme in Business Administration (PGPBA) at Indo German Training Centres at Mumbai and Bengaluru.
PRIMARY HEALTHCARE SUPPORT AND HEALTH EDUCATION
SANJEEVAN MOBILE CLINICS
Equitable access and coverage to health services is a major concern for populations living in remote, inaccessible, un-served and underserved areas. In alignment with the National Health Mission (NHM), Siemens Sanjeevan Mobile Clinics fitted with Siemens healthcare equipment are intended to cater to the urban poor and vulnerable population through preventive, promotive and curative primary healthcare services in areas where there is no infrastructure. Siemens commissioned custom-built Sanjeevan Mobile Clinics in Madhepura, Bihar and in Kalyan-Dombivali region on the outskirts of Mumbai. The objective is two-fold: instilling health seeking behavior and improving health indicators of the community. The Clinics are working towards delivering the NHMs goal of a comprehensive package of Reproductive, Maternal, Newborn, Child Health and Adolescent (RMNCH + A) services, Communicable Disease Control and Non Communicable Diseases programmes. Siemens along with its implementing partners NGOs Smile Foundation in Madhepura, Bihar and SNEHA (Society for Nutrition, Education and Health Action) in Kalyan-Dombivali, Maharashtra are conducting daily OPDs, pathological tests, X-rays, ECGs and specialized camps on gynecology, pediatrics, etc. Over 90,000 individuals in Madhepura and 112,000 citizens in Kalyan-Dombivali are covered under the project. Till date more than 119,000 patients have been treated of which more than 65% are women. Besides this, there are heath education programs on health & hygiene and health systems at schools and communities on preventing diseases and improving health seeking behavior. Sanjeevan Mobile Clinics have successfully reached out to pockets of the population (old people, women with young children, women with no spending power) who would have otherwise been deprived of primary care to a large extent. This has led to an increase in communities accessing of healthcare especially in Maternal and Child Health services by 63% and has achieved 100% immunization. The project also supported formation of statutory Village Health Nutrition and Sanitation Committees (VHNSC) in 10 villages of Madhepura and Mahila Arogya Samiti (MAS) in Kalyan Dombivali to strengthen community governance of health and sanitation.
ENERGY EFFICIENCY PROGRAM AT GOVERNMENT INSTITUTIONS
With the aim of addressing the Climate Change action arising out of Sustainable Development Goals and the targets received for the country under Conference of the Parties 21 (Paris Agreement), Siemens aligned with the KEM Hospital, Mumbai to help reduce the Hospitals Energy Consumption by implementing Facility Improvement Measures. KEM Hospital is the largest tertiary care Government Hospital in Mumbai. It is more than 150 years old and has 2250 bed capacity. A study was conducted to identify the challenges faced by the hospital. With mutual discussions with Hospital Authorities, Siemens identified, designed, developed and implemented the various facility improvement measures that includes: – Chiller Plant & Air Side Optimization covering entire hospital – LED Retrofits for over 5000 lights – Fire Detection & Suppression System for MS New Building – CCTV Security System for MS New Building These improvement measures implemented by Siemens will help KEM Hospital to reduce its total electricity consumption by around 11% that translates into 1680 tons of annual carbon emission reduction saving INR 210 Million in electricity bills annually.
Improve its building safety with Fire Alarm Systems, easy management of security controls with advanced CCTV systems and enhancement of patient comfort with improved lighting and HVAC controls. A study of Chennais largest hospital Government General Hospital has been conducted on similar lines.
Siemens being a socially-responsible company has always reached out to communities affected by natural calamities. Siemens responded to the communities affected during the Assam and Bihar floods by providing immediate relief through Oxfam India with its Catastrophe fund. In Assam, Siemens supported the worst affected districts of Lakhimpur and Karimganj with Water And Sanitation and Hygiene (WASH) and shelter kits. In Bihar, Siemens supported families in Katihar district, the worst affected district with (WASH) and shelter kits to contribute towards improving the living conditions of the affected communities.
CSR TEAM – ORGANIZATION
- Deepak S. Parekh, Chairman
- Mr. Sunil Mathur, Member
- Mr. Christian Rummel, Member
- Ms. Mariel von Schumann Member
CSR BUDGET SPENT
- Average net profits of the Company for last three financial years: INR 74,227.87 lakhs
- Total amount spent for the financial year: INR 1,484.56 lakhs
OUTCOME AND IMPACT OF CSR ACTIVITIES OF SIEMENS INDIA
|Project Name||Project Implementation||Area||Impact Group||Project Duration|
|Up-gradation of Industrial Training Institutes||Directorates of Employment and Training and ITIs||Maharashtra, Gujarat, Karnataka||Students and Instructors of Government ITIs||2014-2019|
|Project Asha||AROEHAN, field action project of Nirmala Niketan, college of social work||Mokhada, Thane, Maharashtra||13 Villages of Mokhada block||2012-2015|
|Siemens Scholarship Program Growth Centre||Growth Centerm, Smile Foundation||All India||Meritorious engineering students from economically backward families||2013-2017|
|Sanjeevan- the mobile healthcare clinic||Smile Foundation, Global Health Private Limited, Society for Nutrition, Education and Health Action (SNEHA)||Madhepura in Bihar, Rural Haryana, Kalyan, Dombivali, Mira, Bhayander in Maharashtra||–||2012-2016|
|Drought mitigation project||Action Aid Association||Aurangabad||Division Villagers of Nandkheda Sirasgaon||2013-2015|
|Educational scholarship to Destitute Children||The Welfare Society for Destitute||Mumbai||Children Children & youth of The Welfare Society for Destitute Children||2003-2016|
|Skills Development Centre||TBD||Youth from economically backward families||Kalwa, Nashik, Vadodara||2014-2017|
|Employee Volunteering||Katalyst, Aide-et-action, The Welfare Society for Destitute Children, Children Aid Society, AID, Smile Foundation||Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Delhi, Gurgaon and Kolkata||Children, youth, underprivileged girls||Ongoing|
|Ethics Education||Children’s Movement for Civic Awareness (CMCA)||Maharashtra||School and Junior college students||2014-2016|
STRATEGIC CONNECT OF THE CSR ACTIVITIES WITH THE CORE BUSINESS OF SIEMENS INDIA
Siemens, measure the impact of their initiatives by the improvement vs investment of any cause being successful. For each cause across sectors under CSR program, they involve expert leaders, NGOs and communities who understand policy and practice which helps in making optimum allocations and ensure holistic interventions to maximize impact. This also significantly reduces the transaction costs of multiple companies identifying interventions, credible NGOs, monitoring activities, and so on.
Siemens wish to sustainably improve living conditions for as many people as possible, worldwide. The Company works towards that goal with business activities that address the challenges of time such as Demographic change, Urbanization, Climate Change, Globalization and Digitalization. Siemens wants to make real what matters in the way they electrify, automate and digitalize the world. They believe in ingenuity and they create for society. Their company-wide Corporate Citizenship framework forms a part of the Sustainability & Citizenship priority area. The Company considers it as its economic, environmental and social responsibility to foster sustainable local development as well as add value to the local economy in which it operates. The Company derives its sustainability initiatives from these challenges. These initiatives, generally known as Corporate Social Responsibility (CSR), are referred to as Corporate Citizenship in Siemens. The Corporate Citizenship strategy is in line with the Companys goal to address the three dimensions of Sustainability i.e. Economic, Environment and Social. Hence, the strategy focuses on: Education & Science, Social, and Environment. The strategy aims to address the challenges and needs that communities face by leveraging the Companys competencies and solutions. It is oriented towards the National development agenda, UN Sustainable Development Goals and UN Global Compact principles.
SIEMENS India builds their commitment on three pillars: access to technology, access to education, and sustaining communities. They will strive and want to share their knowledge in electrification, automation, digitization as well as scientific research and make it accessible to people around the world. This know-how has the potential to significantly improve the quality of life of many. Corporate citizenship has been an integral part of Siemens from the very beginning. They aim to contribute to the sustainable development of the regions, in which the company operates. The Project Asha in India is just one example of the many corporate social responsibility initiatives Siemens have launched.
Siemens India has created a strong CSR Foundation in India through its programmes like Project Asha and Mokhada Project. Though these projects are strategically aligned making a reasonable impact on the ground, do not justify the size of the company, the power of the brand (ranked among the top brands of the world) and potential impact possibilities.