Human capital

We paused to save lives.
Restarted to embrace the new.

The exemplary efforts of our Surat team are a perfect embodiment of the

spirIt – rising above the ordinary and delivering when the odds are stacked against.

Is it possible to resume operations in a COVID-19 hotspot even with necessary permissions? Is it feasible to produce and dispatch cement from an area under complete lockdown by following all government directives and without compromising on the health and safety of our people?

Faced with such unprecedented challenges, our Surat team rose above the ordinary to create a conducive environment to restore business.

The first challenge was to make arrangements for workers to live inside the plant. So, they converted the training hall and canteen into lodging facilities. Food was arranged for all within the premises. Truck drivers were also accommodated. The site was sanitised twice a day and medical check-up was conducted for all manpower.

The team worked tirelessly to create awareness on COVID-19 and alerted family members on the necessary precautions. Surat thus became our first plant to restart production on April 13, 2020 and dispatched 20,000 tonnes of cement during the month, securing around 65% market share. That’s not all. Local authorities after visiting the plant highlighted its compliant operations as a model for others to emulate.

Surat plant made special arrangements to commence production and dispatch during the lockdown

Surat plant dispatched 22,000 tonnes of cement in April 2020

Ambuja maintains compliances and manages workers as per guidelines

Our diverse team of skilled, accountable and engaged employees play a critical role for the sustainable growth of our organisation. We pivoted our human resource focus to provide an enabling, supportive and safe environment for our employees in this period of significant change, uncertainty and stress. Also, we prioritised keeping our people engaged, connected and well-informed.

Our human resource strategy focuses on the home grown ‘I Can’ philosophy, which empowers our people to set and achieve their own targets.

This results in a highly motivated workspace and increased sense of ownership.

Total
employees
5,046
Training programmes imparted in 2020
702

SDGs impacted

2020 Highlights:
Prioritising health and safety,
developing capabilities

KEY INPUTS

  • 5,046 total employees; 4,921 male and 125 female
  • 142 new employees hired during 2020
  • 36.2 million man-hours of work
  • `669 crores spent on employee benefit expenditure
  • Employee expertise, skill-sets and integrity
  • ~11 man-hours of training imparted per employee
  • Robust health and safety management system
  • Health and safety audit for groups, plants and cross-functional operations
  • 100% of workers represented by the safety committee
  • Robust policies and procedures

KEY OUTCOMES

Reduction in total onsite recordable injuries
(%)
14.28
Reduction in total injury frequency
(%)
23
Reduction in lost time injury frequency
(%)
30.3
Onsite fatalities
ZERO
Improvement in retention rate
(basis points)
444
And constructive industrial relations
STABLE
Women in total
workforce
(%)
2.5
Women in management positions
(%)
3.5
Women in junior management
(%)
4
Women in revenue generating roles
(%)
3.4
Impact on other capitals
Financial capital
  • Investment in knowledge and skill development of employees
  • Employee welfare expenses
Manufactured capital
  • Ensured efficiency and quality in manufacturing process
  • Timely and cost-effective project implementation
Intellectual capital
  • Increased participation in driving innovation
  • Operational readiness and transfer
Social capital

Enhanced employee experience through voluntary participation in community development initiatives

Relationship capital

Provide superior experience for consumers

Natural capital

Increased awareness and initiatives towards resource conservation and to ensure sustainability

Stakeholders impacted

  • Employees

Material issues addressed

  • Health and safety
  • Employee training
  • Gender equity
  • Labour issues
  • Attrition and retention rate
  • Code of conduct

Key risks addressed

  • Talent acquisition and retention
  • Health and safety

Our HR management philosophy revolves around empowering the employees to make them more productive, efficient and integral to the organisation. We aim to strike a balance between the achievement of business goals and nurturing the talent pool available to strengthen the organisation’s competitive advantage.

We maintain a collaborative, inclusive, non-discriminative and safe work culture, and provide equal opportunities to all employees. We have a ‘Zero Tolerance’ policy towards sexual harassment at the workplace based on the applicable law. Our Codes of Business Conduct lays down acceptable professional behaviour expected from our internal and external stakeholders.

Employee benefits
Contribution to Superannuation Fund, Provident Fund (PF), Employees’ State Insurance Corporation and Labour Welfare Fund form our defined contribution plan towards employee benefits. Retirement benefits such as gratuity, is considered as defined benefit obligations; they are provided based on actuarial valuation, using the projected unit credit method. Postretirement medical benefit is now completely funded by beneficiaries. Death and disability benefit is as per the insurance policy. For most of the employees, the Provident Fund is managed by the Employees Provident Fund Organisation (EPFO). Some employees are part of the exempted PF trust of Ambuja. Healthcare, disability, invalidity coverage, life insurance, and medical benefits are available to employees. Superannuation is not available to some categories of Full-time employees (FTEs). All these benefits are offered irrespective of location. Women employees are entitled to maternity leave as per The Maternity Benefit (Amendment) Act, 2017. An employee can avail of maternity leave for a continuous period of 26 weeks, or opt for two 13 week segments, divided between the pre-natal and post-natal period as per her convenience. This benefit can be availed of up to a maximum of two children. In 2020, seven women employees availed maternity leave; six of them remained employed for the rest of the year after resuming work, and one is still on leave. A minimum of one month notice is provided to employees and their elected representatives prior to the implementation of significant operational changes that could substantially affect them. This is specified in the Industrial Relations Act, 1947.

Employees who spend more than a decade with the organisation are felicitated with ‘Long Service Awards’.

Local minimum wage rules are followed, and employees are paid above the local minimum wages. The ratio of the standard entry‑level wage as compared to the local minimum wage at significant locations that include all our operating plants is 1:1. Merit is the main parameter for recruitment, but preference is given to local hiring. We are an equal opportunity employer providing equal remuneration for women and men. The ratio of the average basic and total salary of women to men is 1.17:1 and 1.14:1, respectively management level roles and 1:1 for the entry level average total salary, considering all locations of our operations.

We have recognised trade unions affiliated to INTUC/AITUC/BMS, representing blue collar employees at different locations. Ambuja Cement respects freedom of association and allows its employees to join an independent trade union. Out of our total permanent workforce ~30% employees are covered by collective bargaining agreement.

Effective talent acquisition
We have in place campus hiring programmes to recruit engineers and management trainees to ensure a talent pipeline that can be developed further to accelerate our growth. During the year, we recruited 142 new employees, of which 9% are women.

Learning and development
We try to constantly improve employee learning and development activities. The training needs and performance gaps identified during the appraisal process serve as the basis for formulating training and development programmes for employees.

The ACC ACL Leadership Academy (AALA)—a joint academy of ACC and Ambuja Cement, started in 2012— and Techport (for technical trainings) provide leadership as well as functional trainings to employees for developing capability and competence. Apart from classroom and on-the-job trainings, we also focus on virtual e-learning trainings and webinars for a wider coverage on different topics while enabling employees to learn at their own pace and place.

Being part of the LafargeHolcim Group, we provide our employees with international exposure through short-term projects and long-term assignments.

Initiatives in 2020
Owing to the pandemic, the learning programmes in 2020 were designed around the use of digital technology. Learning became an essential tool of employee engagement and we partnered with various internal experts and functional heads to deliver these.

The learning programmes were delivered through a three-pronged approach:

  • A total of 702 training programmes were conducted during 2020 including physical and virtual sessions on functional skill development, soft skill development and other modules relevant for management and personal development
  • Other organisation-specific learning programmes driven by the function heads

These sessions utilised the online meeting platform, along with the in-house learning experience platform, Super Assisted Intelligent Learning (SAIL). SAIL is an application which works not only as a repository for programmes conducted, but also for content creation, curation and e-learning.

As per the business and training need analysis, we are running certification programme, role-based programmes and expert development initiatives:

Plant-specific programmes
We run some specific programmes to achieve consistent operations, standard maintenance within the plant and across the plants between operators, engineers and technicians in order to achieve sustainable high performance.

Programme objective

  • Consistently achieve operational and maintenance targets by having reliable operators, engineers and managers who perform well and in a safe manner
  • Achieve sustainable high performance in our plants
  • Standardised maintenance operation within LafargeHolcim Group standards on operation and safety

The following programmes were initiated:

  • Control room operator certification
  • Walk-by inspector certification
  • Process engineer certification
  • Preventive maintenance engineer certification
  • Expert development initiative on critical skills
  • Leveraging technology—remote troubleshooting and training

Talent management
Our focus on nurturing talent with care and a fair remuneration policy has helped in developing a strong sense of ownership among our employees. Structured talent reviews, supported with Individual Development Plans (IDPs) and cross-functional and cross-location assignments have resulted in a healthy talent intake. We introduced a new performance structure that defines Profit & Loss Accountability.

We initiate continuous dialogues with our employees for their feedback on deliverables, resulting in better performance management. Our dynamic objective setting, which periodically translates the business objectives into team and individual contributions, helps in driving better employee productivity. Together with our periodic inputs that incite merit increase, and bonus benefits, we are helping strengthen our employee output.

People for Tomorrow is our LafargeHolcim Group initiative to identify leading talent at our plants, close competency gaps and manage succession. It helps to ensure that we have the right people, in the right role, with the right competencies, at our industrial sites.

Shaping behaviour at work
We follow the Kirk Patrick evaluation methodology for findings the results of our training programmes, which enables us to assess and shape employee behaviour along three levels— Level 1: Reaction, Level 2: Learning, Level 3: Behaviour change, and Level 4: Results of the training (applied for few trainings).

Level 1 and Level 2 behaviour were assessed through knowledge‑based programmes, largely in the large webinar category. For Level 3 assessment, action learning projects were conducted to assess whether employees can convert their learning into action. Level 3 evaluation was initiated for a host of programmes, including successor development programme, health and safety and technical trainings. The method helped us measure how a training has influenced behaviour and how this is applied on-the-job. We used this method to assess dealers following the completion of the ‘New Dealer Appointment’ training.

Training programmes imparted in 2020
(Physical and Online)
702

Developing a leadership pipeline
We invest proactively in training initiatives for leadership development to create a robust leadership pipeline to drive the long-term growth objective of Ambuja Cement. We focused our leadership development initiatives during the year around our Strategy 2022. We directed our leadership programmes on health, cash and cost to combat the change in the business environment. The focus was on the following:

  • Build own resilience in managing the pandemic: Our focus areas were working with emotional intelligence, managing team motivation and managing dealer relationships during the lockdown
  • Build resilience as a team: Grooming dealers, appointing new dealers, honing cross-functional skills, working and developing stronger customer relations were part of this initiative
  • Build resilience as a business: Negotiating with cash and cost, lean thinking, reducing cost of power and fuel, working with net zero mandates were some of the topics discussed
  • Others: First time managerial skill development initiative was also taken up as an extension of the leadership development programme

Succession planning
Key senior positions at Ambuja Cement are now being increasingly filled internally. Our Sustainable Talent for Enhanced Performance (STEP) programme duly complements our talent management model for succession planning of senior management.

We have created a structured talent review and succession planning process that assesses people on defined matrices and plots them in a nine-box performance and potential matrix. Based on the outcome of the matrix, the high-potential (HiPo) candidates are assessed on their preparedness and readiness to take on higher-level roles.

The identified successors undergo customised development programmes to prepare them for the higher-level roles in the organisation.

We have a pool of ready successors who will drive our growth strategy over the next three to five years.

Industrial relations
At Ambuja Cement, we believe that the interests of our employees and those of the Company are inseparable. With this principle in mind, we engage with our employee unions. On almost all the occasions, a negotiated settlement/ understanding is reached in a win-win manner.

Occupational health and safety
Health and safety (H&S) remains one of our core focus areas and we have worked to make health and safety improvement a way of life at Ambuja Cement. The year 2020 was the final year of our three-year H&S Strategy in order to take our performance in this function to a new level. We had put in place the right systems where they were needed and focused on better implementation rather than introducing new initiatives. Our H&S improvement deliverables for 2020 were built around the theme, ‘Consolidate and Strengthen As Is’.

Despite the onset of the pandemic, we were able to achieve a year of zero onsite and offsite fatality with 30.3% reduction in LTIFR. Road injuries also reduced by 56.5%.

Key challenges to H&S in 2020
The biggest challenge to operations in 2020 was the pandemic. We moved with speed and learnt to operate in a COVID-19 environment, where we had to take this as one of the risks without losing focus.

Some of our key focus areas are the following:

  • Institutionalising operational discipline on the frontline, especially with regard to compliance of rules that govern safe behaviours
  • Ensuring a robust permit to work system across locations
  • Implementing our fatality elimination controls on the ground
  • Maintaining our medical emergency response capability at the required level continuously, especially at remote locations
  • Ensuring acceptable driving behaviours and compliance with minimum vehicle specifications in our logistics chain to reduce both incidents and injuries

We focused on five pillars in our H&S process

Onsite fatality elimination Zero harm culture Systems and processes Control of health risks Road fatality reduction
  • Zero tolerance for non-compliance
  • Focus on leading indicators
  • Minimise repeat incidents
  • Strengthening job risk management – HIRA, PTW and MOC
  • Implement mobile FEC
  • Establish DSCQP baseline and implement Group process
  • Ensure silo cleaning capability and process compliance
  • Greater leadership visibility in the field – Boots on Ground
  • Sustain ‘We Care’ through focus on ‘two minutes and three behaviours’ and behaviourbased safety
  • H&S leadership workshop for cluster and unit top leadership
  • Step up H&S competencies at all levels
  • Improve incident investigation capability and capacity
  • HSMS implementation – Marwar Mundwa and underground mine in coal block
  • Digital transformation – integration with iCare 2.0
  • Strengthen assurance around permit to work system, HSIP implementation at unit level, action closure for crossand intra-plant audits
  • Raise process safety management awareness and competency – pilot programme for Ambuja Cement
  • Pre-start up safety review implementation
  • Review and revitalise railway safety
  • Emergency response
  • Establish in-house baseline and complete survey for remaining units
  • Reduce dust exposure through control of fugitive emissions, review of efficacy of existing hierarchy of controls at packing plants and better housekeeping
  • Noise-specific control plan
  • Health surveillance digitisation
  • Reduction of manual handling at warehouses
  • 95% controlled fleet through monitored iVMS
  • 90% controlled fleet drivers trained in Incab
  • Effective implementation of rewards and recognition and consequence management
  • Minimum vehicle specification

iVMS - In-Vehicle Monitoring System, HIRA - Hazard Identification and Risk Assessment, PTW - Permit To Work, MOC - Management of Change,
FEC - Fatality Elimination Control, DSCQP - Design Safety and Construction Quality Programme, HSMS - Health & Safety Management System,
HSIP - Health & Safety Improvement Plan

This plan was supported throughout the year by:

  • Compliance through visible frontline leadership – Boots on Ground
  • Strong mitigating measures against COVID-19, including medical emergency response
  • Monthly performance monitoring at unit and corporate level
  • Remote audits and self assessments on HSMS implementation at all units
  • Campaigns/waves on:
    • - Housekeeping
    • - Permit to work
    • - Machine guarding
    • - Working at height
  • Sharing and replication of best practices
  • Timely closure of actions from audits, process safety related self-assessments and structural inspections

Achievements in 2020
Our cohesive efforts across all sites on operational discipline, systems and processes, learning from incidents, and more visible leadership presence in the field (Boots on Ground) have helped deliver stupendous results in 2020. We even registered a 2% increase in man-hours from 2019.

Highlights of our onsite H&S performance:

  • Completed the year with zero harm in six units Surat (Gujarat), Dadri (Uttar Pradesh), Kochi (Kerala), Roorkee (Uttarakhand), Dirk India Private Limited (DIPL) and coal block
  • Achieved more than six years of Lost Time Injury (LTI) free in two units (Surat and Dadri)
  • Recorded a year of LTI free in 13 other manufacturing units
  • Reported 14.28% reduction in total onsite recordable injuries compared with 2019

Road safety
We have also progressed well on road safety, despite the impact of COVID-19, especially on counselling drivers and practical trainings. Key achievements during the year in this space are as follows:

  • Reported 8.5% drop in logistics related incidents
  • Completed 1,891 Incab assessments (practical on the road) covering truck drivers and company-owned four wheeler drivers
  • Installed 853 iVMS and 567 voice boxes in controlled fleet trucks for better coverage of driving behaviours
  • Achieved 10% increase in share of safe km by two wheelers in marketing vis-à-vis 2019
Man-hours of safety training imparted in 2020
28,650

Conflict management
Our operating mining sites are not located adjacent to indigenous peoples' territories. We address issues revolving around local communities (land acquisition and dust emission) through a consultative process and purchase land through negotiations. There were no strikes or lockouts at our mines during the reporting period.

Protecting human rights
We have stipulated our human rights policy in our Code of Conduct and Business Ethics applicable to all employees, vendors and suppliers. We also stringently follow the LafargeHolcim Group’s Directive on Human Rights. Our commitment to human rights is also reinforced by our Group’s participation in the UN Global Compact (UNGC), support for the Code of Business Conduct for Suppliers, and our CSR Policy.

A proactive comprehensive risk assessment is undertaken across our operations through Site Specific Impact Assessments (SSIA), wherein each operational site is assessed at least once in a three-year cycle for potential human rights risks and opportunities.

During 2020, SSIA could not be conducted on site to avoid exposure of employees and other stakeholders with potential health hazards. Besides, we continued to review the process of the human rights compliance of our plants, joint ventures and subsidiaries remotely. Our JVs and subsidiaries provided us with a declaration of their compliance to our policies and regulations on human rights protection.

We ensured that our contractual labour is covered by the Contract Labour (Regulation and Abolition) Act, along with mechanisms to monitor the compliance and report any violations.

We have a Supplier Code of Conduct (SCC) that covers various human rights aspects. We continued to sensitise our employees and security personnel on human rights and possible associated issues.

The total number of incidents, complaints or grievances of human rights violations, along with the backlog of earlier incidents is zero. No complaints were received, nor are any pending cases of child labour, forced/ involuntary labour, sexual harassment and discriminatory employment.

Complaints received by Ambuja Cement for violation of human rights
ZERO