Madras Aluminium Company Ltd. | CSR Rating - Corporate Social Responsibility - India|Details of CSR of the 501-1000 companies for the year 07-08

Madras Aluminium Company Ltd.

Sales (2007-2008) = Rs.470 crores (rounded off)

Net profit after tax = Rs.65 crores (rounded off)

CSR Budget = Not Available

Karmayog 2008 CSR Rating: 2/ 5

CSR activities:

Madras Aluminium Company Ltd. (MALCO) has always taken its Corporate Social Responsibility seriously. MALCO tries to be a role model for others in the same industry.

MALCO’s social consciousness is visible in the following activities:

? Renovation of Anganwadi Centre in the vicinity of the manufacturing facilities.

? Assistance to Gonur Village Maternity ward.

? De-silting of lake in Yercaud.

? 60’ Throw water fountain commissioned on Yercaud lake.

? Supply of potable water to villages in the vicinity of its operations.

? Established one of the best Senior Secondary School with a strength of over 3000 students.

? Construction of cross-over bridge at Mettur Dam Railway station.

? Free medical and health care camps.

MALCO continues to pursue its environment-friendly and society improvement activities beyond the call of duty.

From annual report-

Green Earth, clean Earth

With one sixth of the world’s population, India has more than a billion good reasons to be concerned about the environment. Given our demographcs – 70 percent of our population is below 30 – tomorrow’s world will be very much Indian. MALCO is aware of its role as an environment steward to embrace the green challenge and transform it into an opportunity for innovation and prosperity.

Our green initiatives comprise reducing landfill waste, streamlining water use and planting thousands of trees in the vicinity of our plant and mines. We have extended our ‘green’ concern to comprise a CDM project for the reduction of PFC emissions from

the smelter. The methodology of the project has been approved by the executive board of the UNFCCC and we are working towards achieving the certification. Besides, we continue to emphasise the solid waste disposal of ‘red mud’ to cement industries under

our reduce–reuse–recycle–recover initiatives. Red mud is the residue of bauxite and contains iron and aluminium oxide, which fortifies cement strength. We have registered

our improved quality of red mud as ‘Ferral’ to reflect properties, reinforcing the criticality of our ‘waste-to-wealth’ initiatives.

We care

Guided by our overarching philosophy of creating and sustaining value and equity, year on year, our connection with the communities in which we operate has continued to strengthen.

Corporate Social Responsibility (CSR) at MALCO is a separate and focused function being managed by a young and enthusiastic team, with the complete involvement of the entire MALCO fraternity. We have made significant investments in improving health and education and generating livelihood opportunities with the overall objective of enhancing the quality of life. One of our most recent and successful initiatives has been the creation of self-help groups (SHGs) in partnership with registered NGOs/bodies with a view to empower women to not only enhance their skill sets but also actively contribute to their household incomes. We will continue these initiatives and will attempt to add new vocational courses to our portfolio.

Sustainable Development Report

At MALCO, sustainable development is pivotal to the way we do business. We are committed to raising the quality of life and the social well-being of communities in which we operate. Sustainable development at MALCO is reflected in its triple bottom line approach – Economic, Social and Environmental development. Its performance on safety, health and environment (SHE) comprises the conservation of natural resources, controlling emission norms, responsible solid waste management practices and corporate social responsibility (CSR) initiatives encompassing healthcare, education and livelihood.

1. Green focus

MALCO’s green initiatives for a clean, safe and sustainable environment reconcile the following:

? Achieving a zero-discharge status;

? Managing waste through the disposal of e-waste for the first time

? to a registered e-cycler;

? Disposing (100%) fly ash to cement industries and hollow block

? manufacturers;

? Disposing solid waste comprising red mud to cement industries;

? Disposing spent spot lining to registered recycler for re-use as fuel;

? Complying with the Kyoto Protocol and launching projects for the

? Reduction of PFC emissions from the smelter.

Improvement projects

? Commissioning of sand separator to improve the quality of red

? mud, facilitating disposal to cement industries;

? Installation of oil skimmer to prevent oil contamination and grease

? in the effluents;

? Commissioning of a meteorological monitoring station.

Key events

? MALCO observed World Environment Day on 5 June 2007. On this occasion, saplings were planted in the factory premises to enhance awareness. Besides, banners with safety slogans were displayed across strategic places in the plant. Quiz and slogan competitions were also organised to mark the occasion.

? The Company organised a one-day seminar on red mud use in cement and brick manufacturing, which was named as Ferral, jointly with CII on 14 March 2008. Officials from the Tamil Nadu Pollution Control Board, scientists from TERI, representatives and experts from cement, aluminium and brick manufacturers participated in the event

Ferral: An eco-additive for cement

As a part of its green initiatives, MALCO developed an innovative method for the disposal of red mud (solid waste), which emanates while extracting alumina from bauxite. The ‘Fe’ in Ferral stands for its iron content and ‘Al’ stands for alumina. Ferral or red mud emerges as a solid waste from the alumina refinery and contains iron

(40–45 percent), alumina (20–25 percent) and silica (10–15 percent). Ferral finds large-scale application in cement on account of the following:

? Extensive depletion of raw materials;

? Fluctuation of silica in limestone;

? Fluctuation of alumina in bauxite;

? Inability to use low-cost fuel like lignite.

The advantages of Ferral comprise:

? Conservation of mineral;

? Converts excess sulphur into compounds to

? reinforce cement strength;

? Continuous resource availability.

The Tamil Nadu Pollution Control Board has lauded this unique effort of MALCO. The Vice Chairman of CII in his special address at the Ferral seminar emphasised the need for synergy between the metallurgical industries, power plants and cement industries in the effective disposal and usage of solid waste such as red mud, fly ash and gypsum, among others. He also appreciated the efforts of the Vedanta Group in solid waste disposal.

3. Corporate social responsibility

CSR vision

The Company’s vision is to improve the life quality of its workforce, their families and

the communities around our operations.

Overview

Transcending the domain of business, we work with the communities where we

operate with the same passion with which we run business. The Company’s social

projects addresses need-based issues of deep relevance to the community through

sustainable development and livelihood creation, while imparting quality healthcare

and education. The Company works in 25 villages over two districts (Salem and

Namakkal in Tamil Nadu), reaching out to over 20,000 people.

Need-based assessment programme for the community

MALCO’s community development programme is based on the assessment of the

local needs of the people where it operates. In line with this, the Company has

partnered with the Department of Social Work, Loyola College, Chennai, to conduct a

scientific assessment of the needs of the communities across all the 25 villages at

Mettur and its mines in Yercaud (Salem district) and Kolli Hills (Namakkal). The report mapped the socio-economic profile, education, health, water and sanitation needs of the people. The study helped in formulating a road map for MALCO’s CSR activities, paving the way for long-term projects.

Engagement with government and local bodies

MALCO is engaged in periodic reviews with the government and local bodies –

Panchayat leaders and opinion makers – to enhance the effectiveness of its community development schemes.

Healthcare

MALCO has created relevant infrastructure for providing basic healthcare. The

Company works in the following areas under its healthcare programme:

? MALCO Clinic: Provided quality healthcare to over 2,300 people. Functions every evening under a qualified doctor, providing general consultation and treatment.

? DOTS Centre: Emerged as a government-authorised DOTS (Directly Observed

Treatment Short Course) Centre. Set up under the Revised National Tuberculosis Control Programme (RNTCP) in partnership with the District Tuberculosis Office,

Salem, and the Government General Hospital, Mettur Dam. Around 32 patients were treated under the DOTS regimen.

? Safe delivery programme: Created awareness among the people of Kolli about the

perils of residential child birth and ensured safe institutional delivery for over 240

women.

? Medical camps: Provided basic healthcare to the villagers of Kolli. Organised weekly mobile medical camps, providing treatment for common illnesses like fever, cold and other respiratory problems at Kolli. Over 1,500 people availed of the facility.

? Multi-speciality camps: Held multi-speciality camps for cardiology, skin and

stomach-related ailments. Reached around 1,200 people through these camps.

? Special eye camps: Organised two special eye camps in partnership with a local eye

hospital. Benefited around 3,000 people. Of these, 14 patients were operated upon

and fitted with intra-ocular lenses.

? World AIDS Day: Observed World AIDS Day with awareness campaigns where 1,200 school students participated. Targeted truck drivers who transport bauxite and raw material from the Company’s mines and other places to our factory.

Education

? Evening centre: We covered more than 300 students through 11 centres in Kolli Hills and Mettur. Students demonstrated significant improvements in their quarterly and half-yearly examinations. Regular parent-teacher interfaces were held to review and monitor their progress.

? Adult literacy programme: Provided basic education to tribals under the aegis of

TCS programme. Around 140 women benefited from the initiative.

? Other initiatives to support education:

• Provided infrastructural support to three government schools with 108 desks and 68 benches;

• Trained more than 500 students of MALCO Vidyalaya on personality development and communication skills;

• Imparted effective teaching methods to around 100 teachers;

• Upgraded the Middle School in Kolli Hill to High School, benefiting more than 450 students.

Livelihood

The MALCO livelihood programme envisages organising women into groups to

inculcate a savings habit and develop individual entrepreneurs to uplift tribal women.

Objectives

? To form 12 SHGs (self-help groups) in and around 12 villages around the Kolli mines.

? To enrol at least 150 tribal women in these SHGs.

? To develop around 120 individual entrepreneurs from these SHGs.

Process adopted

Doctor Typhagne Memorial Trust (DTMC), an NGO from Salem, Tamil Nadu, already working in Kolli Hills was approached and a project proposal was drawn up. An MoU between MALCO and the NGO was created. The project was drawn up for 15 months.

DTMC runs a full-fledged tailoring unit at Kolli Hills where around 16 women are enrolled based on their interests. The training is provided by Ms. Manjula who handles tailoring and handicrafts training; a certificate is awarded at the end of the one-month training period. A group of women who attended the training came together and started their own enterprise. The government recognises this training and provides free tailoring machines. Five women received the machines, and are now supplementing their family’s income by earning Rs. 50 –100 a day.

Activities involved

? SHG formation and linkage with banks;

? Training in mushroom cultivation/vegetable cultivation/vermin-composting, embroidery and garmentmaking and knitting with machines and handicraft;

? Development of individual entrepreneurs and providing them with market linkages.

Mushroom (nutritious food) is promoted by the Government of Tamil Nadu in hilly areas as the climate is conducive for cultivation, the cost of production is less and the yield higher. Since the majority of the people are farmers, there is a huge demand for vermin-compost and the production process of this agro-fertiliser is technically less complicated.

Source:

http://www.malco-india.com/csr.asp (CSR)

http://www.malco-india.com/admin/financial/MalcoDocument/F000000036.pdf (Pgs. 5, 6,18,19, Annual Report 2007-08)

http://www.malco-india.com/admin/financial/MalcoDocument/F000000035.pdf

( UN Global Compact Report - A comprehensive report - 12 pages)

Contact Information:

Madras Aluminium Company Ltd.

Post Box. 4, Mettur Dam

Salem District. - 636 402

Tamilnadu, South India

Phone : 4298 - 222061 - 65

Fax : 4298 - 222069, 222215