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Time of India
11-07-2025
- Business
- Time of India
Treat workers well, stop relying on jugaad: Jain
At a panel discussion organised by the Chamber of Industrial & Commercial Undertakings (CICU), industry leaders and experts called for a change in mindset, saying that world-class manufacturing was no longer a choice but a necessity. Tired of too many ads? go ad free now Sachit Jain, vice-chairman and managing director (MD), Vardhman Special Steels, said that Ludhiana had no option but to comply with standards of world-class manufacturing. "It is no longer a matter of choice. The way the world is aligned, manufacturing is coming to India from China. Whether it was Covid or the shifting geopolitical landscape, the opportunity is ours to take," he said. Naming leading international companies, he said that the reason firms in Ludhiana were unable to match their stature was their mindset. "We here in Ludhiana think of jugaad, which won't take us there," he said. He called for replacing the culture of jugaad with systematic problem-solving. "In Japan, things run on time, while in Ludhiana we settle for somehow in time. That's where the shift must begin. Quality, safety and punctuality cannot be negotiable," he asserted. Drawing from his own practices, Jain shared that he meets at least six workers every day to understand their concerns and foster a culture of respect and safety. "If we want world-class output, we must treat our people in a world-class way. That's where the transformation begins," he said. David William Augustine, who heads the Ludhiana project of Tata Steel said that this was an exciting time for India. "The pandemic disrupted global supply chains and exposed over-dependence on China. With the ongoing geopolitical tensions and trade realignments, the world is looking at India to fill that gap," he said. Tired of too many ads? go ad free now "The Japanese made quality a cultural value. That's what we must do in India. Quality has to become DNA," he said. Ambrish Jain, a leading industrialist, warned against resisting change. "In 2005, the world started talking about going paperless. We were scared. But we moved forward—started stapling wood, then scissors, blades, and now vacuum bottles. We now export to over 100 countries, with 90% revenue from our own brands." He said said the biggest barrier to growth was often the mindset of the owner. "If your systems and processes are not strong enough to function without you, your company cannot grow. The owner must become redundant for the company to scale," he said. Lokesh Jain, chairman, CII Ludhiana and director, TK Steels, spoke about ESG (environmental, social, and governance) responsibility. He said that sustainability was often reduced to paperwork and compliance, but it must become a lived value. "We planted over 18,000 native trees using the Miyawaki method. As a result, pollination of the native tree species is happening across a 10-kilometre radius. Giving back to society and the environment should not be a compliance report, it should be our culture and our own moral responsilbity without any need for a compliance or rule," he said.
The Hindu
05-07-2025
- Business
- The Hindu
What are the pros and cons of the Employment-Linked Incentive scheme?
The story so far:The Union Cabinet approved an Employment-Linked Incentive (ELI) scheme with an outlay of ₹99,446 crore. The scheme, a promise made in the 2024-25 budget, is aimed at creating employment, particularly in the manufacturing sector. It is a part of the Prime Minister's package of five schemes to facilitate employment such as internships with big companies and measures to improve skills of the youth. What are the key provisions? The ELI scheme, according to the Labour Ministry, incentivises creation of more than 3.5 crore jobs over a period of two years. The Centre expects 1.92 crore newly employed people to get the benefit of the scheme, which comes into operation from August 1, 2025 and ends on July 31, 2027. The Employees Provident Fund Organisation (EPFO) will implement the scheme. Newly recruited employees, with salaries up to ₹1 lakh, will get a one-month EPF wage up to ₹15,000 in two installments. The EPFO will pay the first instalment after six months of service and the second instalment after 12 months of service — both as direct bank transfer. A portion of the incentive will be kept in 'a savings instrument of deposit account for a fixed period and can be withdrawn by the employee at a later date'. The establishments, registered with EPFO, will get up to ₹3,000 per month, for two years, 'for each additional employee with sustained employment for at least six months'. The Centre adds that for the manufacturing sector, incentives will be extended to third and fourth years as well. How have employers responded? Employers have welcomed the scheme, with caveats. Former Federation of Indian Chambers of Commerce and Industry president Subhrakant Panda said that ELI is a 'laudable initiative'. It will drive employment, especially in the manufacturing sector, through an innovative approach which combines support for those joining the workforce for the first time with incentives for creating sustained employment, he added. CII's office-bearer Sachit Jain said the ELI scheme has the potential to reshape India's employment landscape and boost labour-intensive sectors. The Sangh Parivar-backed Laghu Udyog Bharati pointed out that the focus of the scheme must be directed towards micro, small manufacturing units and allied service sectors. 'We also urge that units with less than 20 employees, which form the majority, are not left behind. These units must be included under the scheme benefits,' it demanded in a statement. The founder of the Association of Indian Entrepreneurs, K.E. Raghunathan, told The Hindu that the scheme must be repositioned under the Ministry of Micro, Small and Medium Enterprises, with a structured reimbursement model based on actual payroll data addition. 'For every new employee a specific percentage of the salary must be paid to the employee and employer as a subsidy directly on a monthly basis, as long as the employee remains in service. Make it simple and ensure a wider coverage,' he suggested. What about trade unions? Barring the RSS-backed Bharatiya Mazdoor Sangh (BMS), all 10 central trade unions have questioned the scheme. The BMS has welcomed the ELI scheme with a rider that the government must expand the social security base and improve the quality of employment. Other unions fear that workers' money will be used to incentivise employers. Citing the fate of the Production-Linked Incentive of 2020, wherein certain sectors were given sops by the Centre to create jobs, but the money had gone into the pockets of big companies. They argued that the EPFO had to conduct a probe and ban certain companies after finding the scheme was misused for employers' benefits. What are some of the concerns? There are concerns on the role of the EPFO in the scheme. As EPFO is only a custodian of savings of employees, unions are asking how it can act as an agency to implement the scheme. As the EPFO has no government funds in its books, there are doubts over the reimbursement of the money which could go to the employer or a newly recruited employee. As EPFO is not an agency with the responsibility of creating jobs, there are demands to create a separate agency to implement the scheme. Industry experts are also questioning why the government is not addressing the slowdown in the economy, and not taking steps to improve the purchasing power of workers.
Business Standard
23-04-2025
- Business
- Business Standard
Vardhman Special Steels posts nearly 40% YoY drop in Q4 PAT; board OKs Rs 2,000 crore capex plan
Vardhman Special Steels has reported 39.83% fall in net profit to Rs 19.73 crore in Q4 FY25 from Rs 32.79 crore in Q4 FY24. Revenue from operations stood at Rs 428.04 crore in Q4 FY25, as against Rs 439.41 crore in Q4 FY24, a decrease of 2.59% YoY. This was mainly due to decline in realisations inspite of increased volumes. The companys sales volumes for the quarter increased by 3.29% to 53,834 tonnes from 52,118 tonnes recorded in Q4 FY24. This was despite a shutdown of 14 days in Rolling mill in Mar25. EBITDA fell by 32.89% YoY to Rs 38.62 crore in Q4 FY25, primarily due to lower gross margins. EBITDA per ton for the quarter was Rs. 7,174. Vardhman Special Steels has recorded 1.59% rise in net profit to Rs 93.09 crore on a 6.20% increase in revenue from operations to Rs 1,764.41 crore in FY25 as compared with FY24. The company stated that it is setting up a new Greenfield steel plant in the state of Punjab for the manufacturing of special and alloy steel. The planned capacity is 5,00,000 MT per annum of billet production with commensurate rolling mill and testing facilities. The total capital expenditure for the project is estimated at approximately Rs 2,000 crore. The project will be funded through a mix of internal accruals, equity, and debt. The new capacity is expected to be commissioned by FY 202930. The plant will address the capacity shortage after 2028 primarily for existing product lines. Sachit Jain, vice chairman & managing director, Vardhman Special Steels, said: Looking ahead, market demand remains muted. As a result, opportunities for price increases are limited. Raw material prices are relatively stable. Working capital borrowings increased due to inventory build-up in preparation for the planned shutdown. However, the process of the inventory going back to normal level has already started. During the year we have reduced our long term borrowings to Rs 3.29 crore and will continue to bring it down further going forward. As planned, the Kocks Block has been successfully commissioned and is currently in the stabilization phase. Once fully operational, it is expected to enhance productivity and reduce inventory requirements. We remain focused on improving operational efficiency and positioning the company for sustainable long term growth. The company has announced a dividend of Rs. 3 per share for FY25 as against Rs. 2 in FY24." Vardhman Special Steels is one of Indias leading producers of special steels, catering to diverse requirements of automotive, engineering, tractors, bearings and allied industries. The company also takes care of steel requirements of select customers for forging applications in international markets of Thailand, Taiwan, Turkey, Italy, Russia, Germany, Vietnam and Japan. The scrip was locked in 20% upper circuit at Rs 249 on the BSE.
