AUTHORS –
- Aditi Sharma , D. Scholar, Suresh Gyan Vihar University, Jaipur
- Swati Mishra, Professor, International School of Business Management, Suresh Gyan Vihar University, Jaipur.
ABSTRACT – This case study discusses about Aditya Aluminum which is a unit of Hindalco Industries Ltd incorporated in 2007 and actual production start on 2013, it is located at Lapanga ,Sambalpur district, Odisha,. The plant having 2 main areas of operation Smelter and captive power plant. Sambalpur is ores and mineral industrial belt in Odisha where many industries like Vedanta Industries, Bhushan Power & Steel Limited and Aditya Aluminum are setup. Mr. Basavaraj Kondaguli is human resource manager at Aditya Aluminum observed that their employees are exiting the organization and rejoining with Vedanta Industries in the same industrial belt. Aditya Aluminum provides benefits & incentives, health insurance, home township, hospital facilities for retention of employees for long time duration but unfournately Aditya Aluminum fails to hold their component employees for long time. This case study is about finding the main reason for employee exit from Aditya aluminium.
INTRODUCTION – Hindalco Industries started its journey early in 1958. Mr. GD Birla has vision to contribute best in Indian Industries and he successfully establish India’s first integrate aluminum industry at Renukoot, district Sonebhadra, Uttar Pradesh. In 1967, this aluminum plant was fused up with thermal power plant which is situated at Renusagar. Later under the supervision of Mr. Aditya Vikram Birla, Hindalco Industries reached the success heights. Later with the vision and cooperation of Mr. Kumar Mangalam Birla, the Hindalco Group enables to become one of the best non- ferrous metal power house in India. Hindalco Industries was able to achieve success in mines industries as they emphasis on expansion of their business. They have done mergers as well as acquisitions in order to expand their business and become benchmark for all the mines industries. Birla copper and various copper reserves in Australia was also acquired by Hindalco to expand mines business at global level. Today Hindalco is one of the largest producer of aluminum in India and all over Asia.
Aditya Aluminium is an Aluminium Smelter Complex having a capacity of 3,60,000 TPA(360 Pots) and 252 Pots are in Operation. It has own Captive Power Plant of 900 MW (6 Units @ 150 MW) and 4 Units are in Operation, 5th Unit installation is completed. This Complex is designed for phased capacity expansion in future, with final capacity of 7,20,000 TPA Primary Aluminium along with 1650 MW CPP.The Smelter Plant is established with the State of the Art AP-36 technology from Rio-Tinto Alcan(Aluminium Pechiney), France[1]. Power Plant equipment supply & erection is done by BHEL.Total investment of this plant is around Rs. 14,289 Crore.
SMELTER
Smelter primarily converts Alumina (Al2O3) into molten aluminium which is used to make sow ingots &cast ingots. It is having capacity to produce 359 ktpa of aluminium. It get alumina from Utkal Alumina Rayagada Odisha. Smelter is using Alcn,s Ap365 where AP is aluminium Pechiney of Alcan corporation of Canada operated in36000 Amperes which in among world latest technology.
CPP
CPP or captive power plant is having 6 unit of power station, each of 150MW, i.e. total 900 MW of power is produce which is entirely used for the operation of smelter and usage supply purpose within plant. Aditya aluminium is having coal mines at Talabira II and Talabira III in joint venter with Mahanadi coal ltd. and Neyveli Lignite Corporation
LAND
Govt. land is 1314 acres, private 2017 acres spread over 10 villages.
WATER
Hirakund reservoir, cusec, pipeline length is 4.3 km Aditya Capacity.
COAL
3.7 milion tpa coal from Talabira III coal mines in IV with MLC & NLC.
SMELTER
359 ktpa capacity.
POWER
900 mw capacity of 6 unit each unit 150, 5 units on running 1 on standby for emergency or breakdown of any one.
INGOT
Hindalco produce high quality ingot through smelting. It also produces alloy ingot of various grades. Which are using for production of casting in the auto industry and electrical appliances. These are re melted and further produced into large number of product for various downstream application.
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EMPLOYMENT STATUS
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IN ADITYA ALUMINIUM
| Category of Employment | Min. % of local people as per Govt. | Actual % Employment provided till date | Local people employed |
| Unskilled | 90% | 100% | |
| Semi-skilled and Skilled | 60% | 99% | 634 |
| Supervisory/Managerial | 30% | 69% | 419 |
| Senior Executive | Open market (on merit) | 54% | 14 |
EMPLOYEE SEPERATION ANALYSIS OF EMPLOYEES
Employees separation is one of the human resource practices that ensure HR department of the organization about the exit of a working employee in fair and proper structure way. Aditya Aluminum emphasis on employee separation process and dedicated person is allocated in this department to control & monitor employee exits from the industry. This department is responsible to find and evaluate the factors that is responsible for employee exit from the organization.
VOLUNTARY AND INVOLUNTARY SEPARATION
Separation of employee are basically of two type which includes voluntary separation and another one is involuntary separation. In Voluntary separation, working employees exits from workplace by their own choices or reasons. There is no enforcement or pressure of the management to exit or leave the organization [2]. In involuntary separation, working employees are asked or ordered by the top management to exit and leave the organization with a notice of information. Involuntary separation generally occurs when organization faces financial losses, layoff condition or during recession time. In voluntary separation, employees exit the organization by following all the health practices and process of management. Employees asks permission from their organization and they get their compensation and other benefits. While in involuntary separation working employees does not get full compensation and benefits that is provide by the organization. For example, if medical discounts in organization hospital is provided to the employee but after involuntary separation it will not be provided to the employees.
In order to find main reason for employees exit all the 20 exiting employees from Aditya Aluminum to Vedanta Industries were asked to rank division or department. A similar questionnaire was shared with all the exiting employees, which they have to respond according to rank 1, rank 2, rank 3 and rank 4.
Rank 1: Excellent Rank 2: Very Good Rank 3: Satisfactory Rank 4: Unsatisfactory
Table 2: Response of employees
| Employees | Workplace environment | Home township | Training & development department | Compensation | Work- life balance |
| Employee A | 2 | 3 | 2 | 2 | 4 |
| Employee B | 2 | 4 | 2 | 2 | 3 |
| Employee C | 2 | 3 | 2 | 3 | 4 |
| Employee D | 3 | 3 | 3 | 3 | 4 |
| Employee E | 2 | 3 | 2 | 2 | 4 |
| Employee F | 2 | 4 | 1 | 3 | 3 |
| Employee G | 2 | 4 | 2 | 2 | 4 |
| Employee H | 2 | 2 | 3 | 2 | 3 |
| Employee I | 3 | 3 | 2 | 2 | 4 |
| Employee J | 2 | 3 | 2 | 2 | 2 |
| Employee K | 2 | 3 | 2 | 3 | 4 |
| Employee L | 3 | 2 | 2 | 2 | 4 |
| Employee M | 2 | 4 | 3 | 2 | 4 |
| Employee N | 2 | 4 | 2 | 2 | 3 |
| Employee O | 2 | 2 | 2 | 2 | 4 |
| Employee P | 2 | 4 | 3 | 2 | 4 |
| Employee Q | 2 | 3 | 2 | 3 | 4 |
| Employee R | 2 | 3 | 2 | 3 | 4 |
| Employee S | 2 | 2 | 3 | 3 | 2 |
| Employee T | 2 | 3 | 2 | 2 | 3 |
Workplace Environment
It was found that in context with the workplace environment of Aditya Aluminum 15% of employees was satisfy and 85% found workplace environment good.
Fig1: Workplace Environment analysis
Home Township
In concern with the home township of Aditya Aluminium it was analyzed that 20% of employees ranked home township good, 50% satisfactory and rest 30% were unsatisfied with the township provide to them to stay.
Fig 2: Home Township analysis
Training and Development
It is analyzed that the training and development of Aditya Aluminum was quite concern about the training the employees well. 5% of the employees rank 1 (excellent) to the T&D department, 70% ranked 2 (good) and 25% ranked 3 (satisfactory).
Fig 3: Training and development analysis
Compensation
In context with the compensation offered by Aditya Aluminum to their employees it was analyzed that 65% of the employees were ranked 2 (good) for compensation and 35% ranked 3 (satisfactory).
Fig 4: Compensation analysis
Work life Balance
In concern with the work –life balance it was analyzed that 65% of the employees were unsatisfied with the work- life balance due to which they prefer to switch to another workplace.
Fig 5: Work life balance analysis
Conclusion: Aditya Aluminium is one of the best established industry but it fails to provide proper work- life balance to their employees which leads them to exit and join other established industries in the same belt which includes Bhushan Steel Industries and Vedanta Industries. Moreover, it was found that in the sambalpur industrial belt township of other industries were better that perks employees of Aditya Aluminium to exit and switch to other industry nearby like Vedanta Industries and Bhushan Steel Industries.
References :-
- http:/hindalco.com/operations/aluminium-smelting/adityaaluminium/; Retrieved on 10th September, 2020.
- http:// com/Operations/Aluminium-Smelting/Renukoot/; Retrieved on 10th September, 2020.
- https://www.facebook.com/AdityaAluminiumTownship/; Retrived on 10th September, 2020.
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