Surya Nepal Pvt. Ltd.

ENDURING VALUE FOR ALL STAKEHOLDERS

Head Office Registered Office: Shree Bal Sadan, 1870, Kantipath Kathmandu Nepal Contact person: Mr. Sanjiv Keshava Managing Director E-mail: corporate@snpl.com.np Factories Cigarettes Simara Bara Nepal Contact person: Mr. Prabhakar Shah Factory Manager E-mail: corporate@snpl.com.np Garments Tankisinwari 2 Biratnagar Nepal Contact person: Mr. Rajiv Jasuja General Manager Operations (Garments) E-mail: corporate@snpl.com.np

Profile : Surya Luxury Kings, Shikhar, Khukuri and Bijuli cigarettes Business Nature : pioneered cultivation of cigarette tobaccos in Nepal Year Established : 1986 AD Capital : NRs 3 billion Annual Sales : 2730.00 mill President : Not Available Contact Person : Anil Seth / Deputy General Secretary No. of Total Staff : 425 Current Export Markets : Nepal/India

Trade Term : Export Shipment : Available Currency : NRs

Contact Us
Company Name : Contact Person : Address : Telephone : Fax : Web Site : Surya Nepal Pvt Ltd. Anil Seth / Deputy General Secretary P.O.Box 1864 Kathmandu 4228794 / 4214634 4227585 http://www.snpl.com.np/

Surya Nepal Pvt Ltd -- in which ITC holds 69 percent stake, British American Tobacco (Investment) Ltd 2 percent and the rest belong to 20 Nepali individuals and corporate. Surya Nepal, Nepal's largest private-sector enterprise with a turnover of over $100 million, started operations in 1986 with a single tobacco manufacturing factory in Simara town in Bara district on the India-Nepal border. The tobacco factory produces five brands of cigarettes and accounts for nearly 0.6 million kg out of the almost 0.7 million kg of cigarette tobacco grown annually in Nepal. In 2004, Surya Nepal diversified into garments manufacturing with a state-of-the-art factory in Biratnagar in eastern Nepal that produces the John Player brand of clothing for men.

Surya Nepal Private Limited

BACKGROUND Surya Nepal Private Limited (SNPL) is an Indo-Nepal-UK joint venture, which started operations in Nepal in 1986. SNPL, a subsidiary of ITC Ltd, India, is the largest private sector enterprise in Nepal. The balance shares are held by dispersed Nepalese shareholders and British American Tobacco, UK. LINES OF BUSINESS

SNPL's business includes manufacture and marketing of cigarettes and readymade garments as well as export of readymade garments with a total turnover of over US $100 million. SNPL's commitment to its corporate vision "Enduring value for all stakeholders" has been uncompromising through the years and is reflected in every product and service

provided by the company. It's vision enables it to harmonise shareholder value enhancement and societal value creation. The company is the winner of the prestigious FNCCI National Excellence Award given to the best-managed corporation in Nepal, as also of various national safety and environmental awards. The cigarette and garment factories are ISO-9001: 2000 certified. THE SNPL LOGO

The logo stands for the Company's ethos and the beliefs that the company holds true. It symbolises passion for quality and excellence and a compelling vision to create enduring value for all stakeholders. The mountain stands for SNPL's deep roots in Nepal, and connotes a sense of solidity and permanence, symbolic of it's position as the nation's foremost blue chip company. The rising sun stands for leadership as well as SNPL's passion for excellence. It encapsulates the pioneering spirit that inspires to create products that adhere to the highest international standards. The sun also represents the optimism that marks SNPL's character. It is driven by SNPL's aspiration to sustain its position as one of Nepal's most admired companies.

http://www.nepalbiznews.com/newsdata/Biz-News/suryyanepal.html Surya Nepal Pvt Ltd -- in which ITC holds 69 percent stake, British American Tobacco (Investment) Ltd 2 percent and the rest belong to 20 Nepali individuals and corporates -- is making an initial investment of NRS 24 crore to start a new manufacturing plant in Tanahun district, reports said. Surya Nepal, Nepal's largest private-sector enterprise with a turnover of over $100 million, started operations in 1986 with a single tobacco manufacturing factory in Simara town in Bara district on the India-Nepal border. The tobacco factory produces five brands of cigarettes and accounts for nearly 0.6 million kg out of the almost 0.7 million kg of cigarette tobacco grown annually in Nepal. In 2004, Surya Nepal diversified into garments manufacturing with a state-of-the-art factory in Biratnagar in eastern Nepal that produces the John Player brand of clothing for men.
In the last fiscal, Surya Nepal paid the government NRS 593 crore as revenue.

http://www.nepalbiznews.com/newsdata/Biz-News/suryyanepal.html

Surya Nepal launches Springwood apparel

By Biz Correspondent on April 29,2007

Surya Nepal Pvt. Ltd. (SNPL), manufacturer of popular apparel brand John Players, on Saturday launched a new apparel brand, Springwood in the capital. The brand was launched in the Valley after an extremely successful marketing exercise in Pokhara, states a press release. Springwood shirts will be available from Rs 450 to Rs 750 while trousers will be available from Rs 650 to Rs 750. The current range includes shirts and trousers for office and work wear as well as college wear made from cotton, polyester cotton, cotton lycra and cotton spandex. Harsh Madhav Dhar, managing director of Surya Nepal, in a statement, said the launch of Springwood aims to make the brand a choice for millions of quality and price conscious consumers in Nepal. This will also help in the growth of Nepali garment industry, he was quoted as saying. Nearly three years ago, Surya Nepal made its foray into branded menswear market in Nepal with John Players, a premium brand of shirts, trousers, jeans, t-shirts and belts. "This brand took the market by storm, re-defining the rules in the branded readymade apparel market," states the release.

ITC does not engage in or support direct or indirect discrimination in recruitment, compensation, access to training, promotion, termination or retirement based on caste, religion, disability, gender, age, race, colour, ancestry, marital status or affiliation with a political, religious, or union organization or minority group. The policy is communicated to all employees through induction programmes, policy manuals and intranet portals. Compliance with the Policy is regularly monitored by Divisional and Corporate HR. Policy ITC does not employ any person below the age of eighteen years in the workplace. ITC prohibits the use of forced or compulsory labour at all its units. No employee is made to work against his/her will or work as bonded/forced labour, or subject to corporal punishment or coercion of any type related to work. This policy is publicly available throughout the Company and clearly communicated to all employees in a manner in which it can be understood through induction programmes, policy manuals and intranet portals.

Employment contracts and other records documenting all relevant details of the employees, including age, are maintained at all units and are open to verification by any authorized personnel or relevant statutory body. ITC's core values support an employee engagement process that aligns its employees with a shared vision and purpose of the Company in the belief that every individual brings a different perspective and capability to the team. ITC

thus harnesses the creative potential of all its employees by promoting a culture of partnerships to unleash relevant synergies between different groups of employees. All major changes in operations involving work processes, manning norms and other productivity linked issues are carried out after discussions with the employees and the recognized unions at each location.

SNPLs HR philosophy
Preamble The Surya Nepal philosophy affirms the company s belief that people are its major asset, and that together they will sustain Surya Nepal as an institution with vitality and perpetuity.

Self-managing Resource It believes that each human being is a fundamentally different and unique resource, in that he/she is simultaneously a source, a resource, and the end of all economic and social activity. He/she is the means as well as the purpose. He/she is capable, willing and, in the normal course of evolution, developing.

Potential Surya Nepal believes in the inherent potential of people. There are different kinds and degrees of potential, which can be developed and utilized in the context of task challenges, responsibility and commitment.

Limitations Surya Nepal believes that any apparent limitations in people are the result of a variety of circumstances and factors, and can be overcome with support, awareness and correction, following which, the potential has a chance to flower again.

Quality of Work Life It believes that Surya Nepal as a business institution can provide a high quality of work life for all its members through opportunities for a meaningful career, job satisfaction and professional development. Through this, Surya Nepal members will contribute to quality of life in their interface with society.

Meritocracy Surya Nepal believes that people accept meritocracy as a just and equitable system, and contribute best under conditions of open opportunities and challenges and differential rewards commensurate with performance.

Membership Surya Nepal believes that people can blend harmoniously the components in their membership of Surya Nepal, namely leadership, fellowship and peer ship.

Actualization Surya Nepal believes that the design, implementation and update of human resource management systems, enhancement of skills, and creation of an enabling climate will facilitate the self-actualization of itself as individuals and of Surya Nepal as a valued business institution.

Surya Nepal focuses on the results and the focus of a brand manager should be in line with the focus of the company. The role of training is to improve the organizations effectiveness by: y y y y y y Providing employees with necessary KSAs (Knowledge, skills, attitudes, abilities) Providing personal enrichment Increase competitive advantage Respond to specific organizational needs Increase organizational strategic capability Improve quality

Threshold/Orientation training

During the threshold training the brand manager will be provided trainings on y Working practices, procedures and

precautions. y y Informal/ Socialization training Rules and regulations Services, benefits, leave policies and employee issues. This will be a socializing process where in the newly hired brand manager will be introduced to his colleagues (boss, peers and sub-ordinates). It will ease him at his work place and have effective communication. The manager will also be introduced to different departments: Corporate, Finance, Factory, local suppliers, printers and agency. Induction program Agency Induction The agency will explain about the brands, their history,

rational behind the brand, Brand Identity prism, Brand world and periodic development in brand. Factory induction The Brand manager will have 5 days induction program at factory where he will have detail knowledge of manufacturing system of cigarettes. The induction includes, Tobacco leaf, leaf farming, harvesting, properties, curing techniques Primary Manufacturing division The Brand Manager will be introduced to blending of the tobacco, casing, cutting, flavoring, moisture content, blending , blend briefs etc. Secondary Manufacturing division

Continuing training

The main purpose of the continuing training is to develop the new competency and skills for the brand manager. These trainings can be given in following subjects y y Customer relationship management Best marketing practices and branding strategies y y y Agency management and handling Leadership and communication Trainings on various software systems

Cross training

The brand manager has to work with other line managers from various departments like Human Resource, Finance, Marketing etc. so it is very important for him to understand the work that his peers carry out. It will help him understand others job and use the skills acquired in his own job. Cross training will be given in-house and following types of training will be given y y Role playing Lecture

y y

Conference Case studies

http://m.ekantipur.com/2010/08/21/top-story/top-ten-tax-payers/320862.html

Tax payers 2009-10 1. Nepal Telecom 2. Surya Nepal Rs 9.66b

Rs 5.93b

3. Gorkha Brewery Rs 3.09b 4. Spice Nepal Rs 2.07b Rs 778.00m

5. Nepal Investment Bank 6. Nabil Bank Rs 747.44m

7. Standard Chartered

Rs 655.67m Rs 611.95m Rs 542.33m

8. Rastriya Banijya Bank

9. Rastriya Beema Sansthan 10. Everest Bank

Rs 535.00m

ix) Retirement Benefits a) Gratuity Liability for gratuity benefits payable to the employees is actuarially determined and provided for. Gratuity liabilities are not funded. Until previous year gratuity was provided as per Labour Rules 2050 / Company Rules. b) Leave Encashment and Other Retirement Benefits Liability accrued on account of leave encashment and other retirement benefits are actuarially determined and provided for. Until the previous year liabilities of the above were provided for on accrual basis. c) Provident Fund Regular monthly contributions are made to Provident Funds, which are charged against revenue. x) Bonus

Bonus is provided as per the provisions of the Bonus Act, 2030. xi) Employees Housing Fund Employees Housing Fund is provided as per the provisions of Labour Act, 2048 and is transferred to the General Reserve to the extent utilised.

1.6 Recommendations
1. ITC needs to identify bottlenecks and ensure back-ups for staff with heavy workloads and to mobilize resources and distribute the tasks more evenly. ITC should explore the benefits of adopting an annual hours work contract. 2. ITC should improve the HR planning process to ensure smooth changes and continuity in the skills and competence needed at ITC. This should be a regular item on the senior management team agenda. ITC should develop and publicise a comprehensive HR strategy built around the development of a set of managerial and technical competencies. 3. When a new management team is in place, ITC should develop a formal change management process and program to take the organisation in the direction decided by the new SMC. 4. HRM in ITC needs to be considered and monitored holistically: all the HR, whatever contact they are on, are vital to the effective operation of such a tightly resourced organisation and need to be handled comprehensively. 5. The production of the comprehensive HR strategy is the responsibility of SMC and should be accelerated and linked to a set of clear strategic principles and criteria for the management of people, with managers selected against managerial competences and well-trained in management would be a valuable addition to the administrative HR management currently in place. 6. Training and development for managerial staff is crucial to ITC meeting its targets. Spending on training and development, as a proportion of the total budget, should be increased. 7. As the new PAS is brought on-stream it needs to emphasize staff management; and in particular the ability of such managers to develop subordinates. 8. ITC should examine carefully its use of different forms of employment contract to ensure that it is deriving the maximum advantage from the options available to it. 9. ITC should extend its pool of consultants, making sure that consultants are selected for fit for purpose reasons. That will mean using a wider pool and relying less on a small number of those currently being used. Project managers should be required to show that they have updated their list of consultants and that none have been used for more than 100 days per year. The new online system needs to be established as a priority, linked to application by and screening of candidates and to the improvement of the consultants roster and candidate selection process. 10. ITC needs to examine its staff allocations and ensure that there are, wherever possible, younger people working alongside older people at every level. 11. ITC should evaluate establishing pro-active regional or country representation in order to be closer to both its clients and its stakeholders and partners.

12. Whilst recognizing the progress that has been made communication is an issue where no management can afford to relax its attention. The Evaluation would echo the OIOS report that Enhanced horizontal communication and strengthened in terdivisional and intersectional cooperation in project development and implementation would further increase the value of ITC activities. 13. With the OIOS report, the Evaluation believe that the training strategy should be finalized expeditiously and should address the need for more extensive substantive training and organisation-wide sharing of professional expertise. 14. OIOS advised that ways to facilitate movement of staff among ITC divisions should be explored. ITC should clarify and utilize a rotation program for staff, giving them the opportunity to move between departments. This should be monitored and the number of such movements be reported to the senior management team annually. New life should be breathed into ITCs mobility program and the opportunity for secondments, to and from UN or WTO, but also to governments, universities and other bodies, should be made to work effectively. 15. As a subsection of the HR strategy and linked to the training and development strategy, ITC should develop a consistent approach to career planning and development. 16. As part of its comprehensive HR strategy and linked to the development strategy, ITC should develop succession planning policies. 17. ITC should develop a comprehensive performance identification (measurement) system that takes into account both financial (objective) and non-financial (subjective) measures11. 18. Develop and implement reward systems for consistent high performers (within the limits of the UN administrative framework). Possible rewards could be attendance at conferences, events or training programs that have no direct benefit to ITC but do to the employee; provision for a sabbatical every few years12; freedom to work on any project whatsoever (that is somewhat work-related) for a given period every year, e.g. two weeks. 19. The HR function should identify a comprehensive new HR strategy and sets of policies as outlined here and have them approved by the SMC. The function should also have approved by the SMC a clear mission for itself outlining how it will contribute to the wider mission of ITC and outlining the competences it will need to achieve that. 20. ITC needs to examine its staff allocations and ensure that there are, wherever possible, younger people working alongside older people at every level. 21. ITC should evaluate establishing pro-active regional or country representation in order to be closer to both its clients and its stakeholders and partners. 22. Enhanced horizontal communication and strengthened interdivisional and intersectional cooperation in project development and implementation would further increase the value of ITC activities.

Suggestions on Training and Development Training system, in these organisation have to increase its focus on improving the quality of service given to clientele. There is a need for developing a high level of competence and involvement and thus inculcates a sense of deep commitment and understanding of the challenges of future. There is a need for a continuous programme of training for every individual to work as a member of an effective team and activate the potential to achieve the banks goal. The training has to move from traditional training, to training of the latest technological up gradation. Training focus has to shift from mere knowledge development to more of skill enhancement and creating an attitude for service. Training professionals have to be used more for training rather than departmental experts. Instead of traditional and passive methods such as lecture, more of active methods like case study, business games, and simulations have to be used. These organisations have to use extensive e-learning methods, which can save a lot of time and need not require employees to be away from jobs which hamper work. The benefits of Training and Development methods have to be utilised for practical purposes rather than they being used just to reflect it on paper.

Suggestions for further research: The training and development arena is gaining momentum in the recent years. Myriad of Studies are being conducted on various aspects of training, but there are a number of upcoming areas to uncover. There is a lot of scope for further research based on the future trends affecting training. Some of the future trends affecting training will be: Use of new technologies for delivery of training will increase. Demand for training for virtual work arrangements will rise. Greater emphasis on storage and use of intellectual capital. Training departments will become virtual training organisations. Training will focus on business needs and performance. Training departments will be viewed more from a change model perspective.