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Going Green the Orient Craft way

Apparel May 17, 2012 Guiding the Industry to Follow Sustainability

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Orient Craft is among the very few apparel manufacturers who have transformed in the recent decade from just being a home-grown exporter to an organization with a corporate, responsible and professional structure. The Gurgaon-based apparel and home textile manufacturer has completed one of the 5 factories slated to come up at Bhiwadi, Rajasthan, and that too with a 'Green Certification'. Spread out over a total area of 30 acres within the RIICO Industrial Area, OC is building on a vision of the future which is 'Green' and the LEED Certified Silver-rated Green factory is just the beginning of a journey that was initiated three years ago. Team StitchWorld visited the 'Green Apparel Manufacturing Facility' accompanied by Ranjiv Kapur, President, Orient Craft, the man on whose shoulder lies the responsibility to give shape to the vision of the CMD, Sudhir Dhingra... With 19 apparel manufacturing facilities already operational in Delhi- NCR, the upfront management started planning for the future in 2009. Convinced that Green and responsible manufacturing is the future, the management set out a blue print of an integrated manufacturing complex where not only compliance norms were built into the structure, but the business was able to grow beyond compliance and beyond fashion. Earmarking Bhiwadi in Rajasthan which is an hourand- a-half drive from the OC headquarters in Khandsa, Gurgaon, the location was near enough to be handled by the core team but far enough to generate fresh manpower. After many discussions with the consultants and consistent working and reworking, the first factory was completed in December 2010 and attained the much sought-after Green Certification in May 2011. "The Green factory in Bhiwadi is not just a LEED certified apparel manufacturing facility, it represents the whole 'Sustainable' Corporation Orient Craft has transformed into, in the

past decade,"says Ranjiv Kapur. He adds, "The philosophy of CSR, whether social or environmental is now embedded into our business model and it has helped that our buyers like M&S and Ann Taylor are also deeply rooted in sustainability." M&S with 'Plan A' in particular has been pushing its suppliers towards Green and they are very happy to see the factory up and running. "Going Green is the future and we want to make the right moves early so that when others are struggling to prove creditability, we are already well established and preferred suppliers," reasons Ranjiv. Germinating from an understanding of what important buyers want, what the world requires and the fact that going Green was beneficial to both the organization and the employees, Sudhir Dhingra committed to make an investment in a Green factory complex to be built in a phased manner. "We are proud that today we are the largest factory in India (more than 1 lakh square metres) to be certified as Green, satisfying all the norms that justify such a certification despite all the hurdles that we faced," says Ranjiv. "The reason that we want to talk about it is because as an Indian we need to project our country as being progressive and ready for the future," he adds. However, tracing the journey Ranjiv admits that it was not easy. "The first real hurdle was to understand the concept of Green," he recalls. Despite general perception a Green factory does not mean a factory with lots of greenery; in fact, OC had to remove many of the plants as it was over the permissible limit. "We realized that more plants were in fact a burden on the water levels, as absorptions were higher. Further, the selection of the plants is important and they should be such which fit into the natural habitat and are local species," says Ranjiv. Similarly, Green is not only about the environment it also implies what facilities are given to workers for better working conditions. Creche, ATM, medical room, canteens, special provisions for handicapped, transport facilities, clean work area, visible sign boards for safety measures are a few of the components that construe a green building. In fact, there was a lot of learning and unlearning and just getting things in place was not the challenge but to do it right was a bigger challenge. Another, area which was a learning process was the standards themselves. "When we started we were given a checklist with precise details of what needs to be done. It was our choice to do as

many as we could to increase our scorecard and get a good rating. But many times when the audits happened we were told that standards had been revised so we would not get points as per our expectation for what we had done. But we fought our case as we were never informed on the changes and in many areas our scores were increased, finally adding up to a silver rated certification," avers Ranjiv. OC was also vocal on why a general certification for being Green was being awarded, without clear mention of what was 'Green'. "We questioned why a person making a small office green was treated at par with a huge complex like ours," informs Ranjiv. The result was that now a rider comes with the certification clarifying what is 'Green' - Green Factory, Green Building, Green Office, etc. The process was very demanding, but now that the systems are in place and there is better understanding of the requirements, Ranjiv feels that constructing the next five factories will be easier. "We have painstakingly learned the real meaning of Green and seeing the benefits that it has given us from a 'savings' point of view and as an image building exercise, we are confident that OC will be a leader in CSR for this industry, putting both the country and itself on the world map," concludes an extremely proud Ranjiv. Achievements of 'Green Journey' * Saved energy cost by 24% by using solar energy, energy-efficient lighting and presence of a CFC/HCFC-free HVAC system. * Captures more than 50% of the run-off rainwater and aims to achieve the mark of 95% in the near future. * 100% fulfilment of landscape irrigation and flushing requirement by treated water from the inhouse ETP and STP plants. * 95.6% of waste generated during construction, was reused and recycled. * 30% increase in in-house ventilation.

* The recycled content of all the construction materials accounted for 23% of the total construction material cost. * 73% of the material used in the construction was sourced locally. Landmarks.. * Successfully reduced the waste generated during construction by a factor of 50%, i.e. half of the waste generated was recovered and reused instead of being sent to the landfills * Capture more than 50% of the run-off rainwater and aims to achieve the mark of 95% in the near future. The installed system is however able to collect 100% of the roof and surface water. * Astounding air change rate of 36.68 times per hour in all 11 departments in comparison to the requirement of 8, which is an additional 350%. * The roof is made of 0.55 mm thick steel coated with zinc or aluminium-zinc, and provides the Solar Reflectance Index of 79 and Thermal Emittance of 0.85. * Use of reinforced steel with 70% recycled content; fly ash bricks made of 60% fly ash; tiles with 15% recycled content; and glass with 15% recycled content. The total value of recycled content comprised of 23% of the total cost of the building material. * Out of the total landscaped area, 35% has been covered with drought tolerant plant species, for controlled water consumption. * A layer of Geo-textile material was laid under the top soil both to strengthen its grip and prevent corrosion of the pipes beneath. * The green turf should not be more than 20% of the total premises as maintaining a wide spread green area would increase the water consumption of the entire facility by manifolds. Copyright 2012 Apparel Online, distributed by Contify.comAll Rights Reserved Apparel Online

Wire News provided by News : CSR Orient Craft Embarks Upon a Social Engineering Project in Rajasthan OCLs top management, led by its GM, HR & OD, Shivani Dhingra, the younger of OCL CMD Sudhir Dhingras daughters; Dr. Raj Dravid, Group President, Corporate HR and Training; and Mohinder Garg, Senior Executive VP, Finance and Operations takes Apparel Online Team on a guided tour of the training centre in Bhiwadi and facilitates interactions with its trainers and trainees, giving us an insight into a new model for Cluster Development in the Apparel Industry

Partners with IL & FS to provide employment to Below Poverty Line youth in the State Aims to train 5000 sewing machine operators via 20 training centres over the next two years; First batch of 32 trained operators to be employed by the company in August, 08

The training centre for sewing operators in Bhiwadi, Rajasthan where OCL is putting together a fresh batch of workers sourced from the region

Apparel major Orient Craft Ltd. (OCL) has embarked upon a social engineering project

in Rajasthan, where it is setting up a manufacturing facility, by partnering with the Infrastructure Leasing & Financial Services Ltd. Cluster Development Initiative (IL & FS CDI). The idea is to train a large mass of sewing machine operators in Bhiwadi in Alwar district. The youth, in the age group of 18-30 are from Below Poverty Line (BPL) families in the State and will be employed by the company the day after they complete their 31-day training module, says GM, HR & OD, OCL, Shivani Dhingra. Factories in north India such as OCLs manufacturing units usually get their labour pool, which is migratory in nature, from Eastern Uttar Pradesh and Bihar. Primarily comprised of farmers, this semi-skilled workforce has a tendency for sudden attrition as it leaves for its villages during times of the harvest and during festivals. Labour absenteeism during these times can throw a spanner in the productivity, production and quality of products, leading to late deliveries or rejections. But OCLs strategy for its work in Rajasthan is based on doing away with migratory or contract labour entirely. We are developing our own pool of local labour in the State, and are looking at employing a large number of women in our wing, says Dr. Raj Dravid, Group President Corporate HR and Training. Women are more conscientious and there are no issues of overtime with them, he points out. Moreover, the advantage of the desert State is its wages, as they are lower compared to those in Haryana. Minimum wages in Rajasthan are now at Rs 2990 levels and those in Haryana are about Rs 1000 more, he explains.

The company is also talking to the Rajasthan Government and petitioning it to allot it land at a token cost so that it can construct sturdy but cost-effective fly ash houses for its workforce. But in the immediate future, the Rs 800-crore company is setting up a sewing factory, spread over 2 lakh sq. ft. with over two floors, in the industrial area of Patherdi in Bhiwadi, about 40 kms from its office in Khandsa. The factory will be equipped with 1500 sewing machines in its first phase, which the company is targeting by December, this year. The idea is to have 6000 machines running by 2011, informs Shivani. Trained manpower is crucial to our industry which is so labour-intensive, and we are

aware that the success of our operations will depend upon getting a skilled workforce, she points out.

The Indian Textile and Clothing Industry is expected to reach US $ 85 billion by 2010, by which time, the gap in the demand and supply of skilled manpower is expected to be 2 million. This is why OCL entered into an agreement with IL & FS, notes Dr. Dravid. He is convinced that this Public Private Partnership (PPP) with Government agencies, including the Ministry of Rural Development and the IL & FS, through which a Special Purpose Vehicle has been formed, will help generate a lot of employment in Rajasthan. IL & FS, through a separate company formed for the purpose called the IL & FS Cluster Development Initiative Limited (CDI), has initiated a programme called Skills Programme for Inclusive Growth, whose aim is to help the rural poor gain employable skills and get trained before being placed into various industries. The CDI is partly funded by the Ministry of Rural Development. Trained manpower is crucial to our industry which is so labour-intensive, and we are aware that the success of our operations will depend upon getting a skilled workforce IL & FS believes that the present institutional structure is inadequate to meet the shortage of skilled manpower, both in quantitative and qualitative terms, and is convinced that with the economy growing at a rate of 9% per annum, there is need to ensure that this growth is inclusive, in order to have a positive impact on poverty levels. And the apparel industry requires people on its shop floors, even if they are semi-literate and semi-skilled and the Government has its poverty alleviation objectives. Shivani Dhingra and her team check out a stitched shirt at the training centre

With combined programmes such as this, these objectives can converge into a successful Public Private Partnership, according to the IL & FS. The company is looking to train and get employment for 5 lakh rural poor youth in the next five years. Its industrial sewing operator training programme, which is primarily directed at redressing the problems of the apparel and textile industry, aims to train at least 30,000 youth from families with abysmally low incomes. A BPL family is one whose annual income is a mere Rs 12,000, indicates Dr. Dravid.

In Rajasthan, the IL & FS has identified around 65,000 such families from over 30 districts in the State. A list of these families is maintained by the District Rural Development Agencies (DRDAs). They have been given complete information on the programme, and assured that those who complete their training successfully will be provided jobs in OCL, confirms Dravid. Six of OCs supervisors and industrial engineers have been trained by the IL & FS through a 3-week train the trainer programme, which is patented by the company, so that they can, in turn, train the workforce. We have been visiting the villages and meeting village elders to motivate them to send their children for the training, says Mohinder Garg, Senior Executive VP Finance and Operations, OCL. Each batch has a set of 32 trainees and soon, OCL will train two batches every month to get a workforce of 64 from each centre. Those coming in for training are provided free boarding and lodging during the entire period, he adds. The training, too, is free of cost. Prospective trainees, who are expected to be Class VIII pass, are selected after they clear a series of tests like colour blindness test, finger dexterity test, visual acuity test and hand eye coordination. Following this, they are provided technical training to acquire skills as sewing machine operators; trained on the fundamentals of the sewing machine and taught how to construct mens shirts, trousers and polo shirts. Garment designing, quality evaluation and machine maintenance are also a part of the curriculum.

The Sewing Operator Training Programme

Sudesh, learning the ropes at the training centre for sewing operators run by IL & FS and Orient Craft in Bhiwadi, Rajasthan under an employment generation programme Life will remarkably change for 19-year-old Sudesh Kumari and her younger brother, Kamal, in the first week of August this year, when they get confirmed jobs. Sudesh, who belongs to a family of farmers from Tarwara village in Alwar district, did not know what to do once she had cleared her 10th standard exams. Driven by poverty, and living hand-to-mouth, the duo jumped upon the opportunity to get free training in sewing operations at the community centre in Bhiwadi. They were informed about the programme by village elders and labour welfare officials and decided to join it. Three weeks into the training module, they have learnt how to sew. It took me a couple of days to get comfortable on the machine. But now, I am at ease, says Sudesh, dressed in a neat blue uniform, confident about her surroundings and hopeful about her future. We will be able to send money home from next month and that will help my parents and my sister lead better lives, she

says poignantly.

Trainees are also given an orientation on soft skills and taught lifestyle skills, says Ved Prakash Goyal, Manager, Skill Development, IL & FS, CDI. This module consists of teaching workers about basic health and hygiene, social security, self-management, workplace etiquette and group and team behaviour. Orient Craft is preparing this workforce to be multi-skilled and its trainees are currently working on lock stitch and single stitch machines.

The training is being undertaken at a community centre provided to OCL by the Rajasthan State Industrial Development and Investment Corporation Ltd. (RIICO), with whom the company is in talks to get more such centres. We are looking at starting 8-10 more centres this year and hope to take that number to 20 by 2009-10, assures Dr. Dravid. The company has already identified areas in Neemrana and Tijara, where it can have more such centres.

The first batch of trained personnel will be coming out of this centre in the first week of August, this year. OCL has taken up a 7000 sq. ft. sick factory in Bhiwadi on lease and will be putting them to work on making shirts for the domestic market. We would like to improve our productivity by 25% with this fresh batch of trainees and some more from Jaipur, says Garg. The company is also looking to recruit 1500 Supervisors over the next six months and is in talks with the Apparel Training and Design Centre (ATDC) to do so, he concludes. OCLs social engineering project, which has a Cluster approach, envisages creating a population of 5000 workers; giving them regular employment and good working conditions; providing them proper housing facilities around the factory and not just dormitories, and ensuring that their families can come and live with them in the long run. The subject of whether there are schools in the area for children of potential workers, also features on the list of things to do at OCL. Our approach to this project is holistic,

says Shivani. We would like to believe that our management policies and human resource practices will enable those who work for us to become a highly productive and contented workforce, she concludes.

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