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Page 1: Dabur India

PINNACLE2011

SJCBA Page 1

Page 3: Dabur India

PINNACLE2011

Dabur India Limited is the fourth largest FMCG Company in India with Revenues of US$910 Million (Rs 4110 Crore) & Market Capitalisation of US$4 Billion (Rs 20,000 Crore). Building on a legacy of quality and experience of over 125 years, Dabur operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care & Foods products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care & Foods.

  Milestones

Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status in the industry. The Company has come a long way in popularising and making easily available a whole range of products based on the traditional science of Ayurveda and Dabur has set very high standards in developing products and processes that meet stringent quality norms. As it grows even further, Dabur will continue to mark up on major milestones along the way, setting the road for others to follow...

 Milestones To Success

1884 - Established by Dr. S K Burman at Kolkata

1984 - Dabur completes 100 years

1988 - Launches pharmaceutical medicines

1994 - Comes out with first public issue

1994 - Enters oncology segment

1996 - Enters foods business with the launch of Real Fruit Juice

1996 - Real blitzkrieg

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1998 - Burman family hands over management of the company to professionals

2000 - The 1,000 crore mark

2001 - Super specialty drugs

2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4crore

2003 - Dabur demerges Pharmaceuticals business

2005 - Dabur aquires Balsara

2005 - Dabur announces bonus after 12 years

2006 - Dabur crosses $2 bln market cap, adopts US GAAP.

2006 - Approves FCCB/GDR/ADR up to $200 million

2007 - Celebrating 10 years of Real

2007 - Foray into organised retail

2007 - Dabur Foods merged with Dabur India

  2008 - Acquires Fem Care Pharma

  2009 - Dabur Red Toothpaste joins 'Billion Rupee Brands' club

  2010 - Dabur makes its first overseas acquisition

  2010 - Dabur acquired 100% equity in Namaste Lab

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  2010 - Dabur Chyawanprash Launched Orange & Mango Flavours

Why are we interested in investing in the island: We are interested in diversifying into the field of

tourism. Why the Great Nicobar islands because it is not a

tourist hot spot which is developed as of yet inspite of hotels and resorts present there.

It has natural resources, coral reefs, dense forests with innumerable exotic flowers which will be helpful in research

What are the benefits that the district would avail if we invest in developing tourism in that particular place :

Employment opportunities Increased standard of living Removal of tribes and providing shelter with training

SWOT ANALYSIS

STRENGTHS:

1. Century Old Company2. Established Brand3. Ayurvedic/ herbal Product line

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4. Leader in Herbal Digestives where the product has 90% of the market share Innovativeness in Promotions

WEAKNESS:

1. Profitability is uneven across product line2. New to tourism field.

OPPORTUNITIES:

1. Extend Vatika brand to new categories like Skin Care and body wash segments

2. Launch several OTC brands Southern India Market3. Exploring new geographical areas- local as well global4. Oral Care Segment5. Launching new Products like Hair oils, Herbal and Gel

Toothpastes etc.

THREATS:

1. Competition in the FMCG sector from well-established names

2. Other fields of medicine- Allopathic and HomeopathicMarkets where Herbal products are not recognized

POSITIONING AND THEMES

“An all season Indian Holiday amidst health, nature and adventure”

1. Health Tourisma. Original forms of yoga and meditation

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b. Ayurvedac. Herbal Massagingd. Spirituality tours

2. Tropical Ecstasya. Forest resortsb. Floating cottages in creeks and inletsc. Tree top cottages in the forests

3. Adventure Tourisma. Adventure water sportsb. Inter-island transport byCatamaran/Hovercraft

servicesc. Glass bottom submarine expeditionsfor viewing corals

and other under water marvelsd. Water safari - walk through the seae. High sea game fishing

4. Geo-Cultural Attractiona. Programmes on Indian dance andb. Musicc. Guided tour of the local tribesd. Indian Cuisine and culture ofe. hospitality

SWOT ANALYSIS of the ISLAND

STRENGTHS:

1. Dwellings for the Travellers2. Availability of natural resources

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3. Evenly Distributed tourist attraction4. Clean Environment

WEAKNESS:

1. Isolated land2. Travelling is expensive3. Non availability of skilled employees

OPPORTUNITIES:

1. Increase in Revenue2. Exposure of the place3. Availability of local man force4. Land availability for tourism Development

THREATS:

1. Bad sea weather2. Threat of Tsunami

PROMOTIONAL STRATEGIES

1. Appointing Professional advertising agency2. Providing Ad Brief through

a. All national and local newspapers

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b. Televisionc. On AIRd. Hoardings Displayed across various cities

3. Tie-ups with airlines for discounted farea. Buy 3 get 1 freeb. Buy 5 get 2 free

4. Special tour packagesa. 2Nights/3days Rs. 8,999 (MAGICAL

ANDAMAN)b. 4Nights/5Days Rs. 14,999 (EXOTIC ANDAMAN)c. 9Nights/10Days Rs. 24,999 (MYSTERY OF

ANDAMAN)5. Providing special shopping rates for handicrafts and

souvenir products.6. Association with KBC(winner gets 20 Days free stay in

the island as a complimentary gift)

HOW TO ATTRACT THE CROWD?

1. By providing the best Service2. Having food festivals3. Different tour packages according to the needs.4. Providing interactive sessions for the tourists5. Hosting game shows and lucky draws to get discounted

vouchers for revisit

SEGMENTATION AND TARGETING

We have segmented and targeted the people according to income level and gender.

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Depending upon the suitability people can go for the hotels as mentioned:

1. AC Single Bed(Scenic View) – Rs. 32992. AC Single Bed (Normal) – Rs. 29993. AC Double Bed (Scenic View) -Rs. 54494. AC Double Bed (Normal) - Rs. 46495. Nicobari Cottage - Rs. 35006. Standard room - Rs. 2000

PEST ANALYSIS OF THE ISLAND

Political Analysis:

1. There is a lack of Legislature2. The Lieutenant Governor is himself the Executive head.3. Under the jurisdiction of Kolkata High Court

Economic Analysis:

1. Majority of people are into extensive farming2. Lots of natural resources especially medicinal herbs.3. Standard of living is not that high4. Famous for handicrafts

Social Analysis:

1. 1 teacher training institute is available2. 1 Industrial Training Institute and 2 polytechnic3. Education is highly subsidised with free text books and

uniforms to all tribal students

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4. Computer education is provided to girls under Social Welfare Scheme.

Technological Analysis:

1. After Tsunami lots of destruction took place.2. Technology has not yet improved3. Can tie up with Telecom Industry to develop better

communication network.

PARTICLARS AMOUNT(1st Year) AMOUNT(2nd Year) AMOUNT(3rd Year)Newspapers 3 Crores 3 Crores 3 Crores

Television 7 Crores 7 Crores 7 CroresAIR 1 Crore 1 Crore 1 Crore

Hoardings 4 Crores 4 Crores 4 CroresInternet Marketing 20 Lakhs 20 Lakhs 20 Lakhs

Association with KBC 3 Crores 0 0J Walter Thompson

India (TOTAL)18 Crores 20 Lakhs 15 Crores 20 Lakhs 15 Crores 20 Lakhs

Operations team:

Basics of operations required for developing the island:

Great Nicobar Islands will consist of resorts with spa pool, tennis court, party hall, casino, adventure sports, different cuisine restaurants, lounge bar, disco. For this purpose the

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required infrastructure will be: Labour required is 4500 unskilled and 500 skilled.

Particulars Amount(in crores)machinery ,& equipments[mixers, cranes, borewell]

30

Land & Building 50

Miscellaneous of lifts, escalators, chairs tables etc.

15

Generating power through solar, wind and water

30

Unskilled and skilled labores 4500 & 500(nos)Transportation shipping charges

TOTAL COST

Expansion plans: R&D of medicine National parks Museum Amusement park Schools

Day to day operating expenses will consist of: Trecking- 2 lac Restaurant- 2 lac Recreations-40 thousand Laundry-1 lac

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Transport-5 lac Employee-15lac Miscellaneous-10 lacs The resort will have 200 rooms, 80 villas and value

added services

IT infrastructure and its budget

The following is the present typical spending range for a visiting tourist into this region.

Stay expenses / day INR 50 to INR 4000 Food expenses / day INR 150 to INR 1000

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PROJECT3YRS

RESORT2YRS

ROOMS1 YEAR 6 MONTHS

SUITES4

MONTHS

VILLAS6

MONTHS

HOUSE BOAT

6 MONTHS

RESTAURANT

9 MONTHS

SPECIALITY RESTAURANT

S8 MONTHS

LOUNGE3

MONTHS

CASINO9

MONTHS

RECREATION6 MONTHS

OUTDOOR SPORTS

2 MONTHS

TRECKING2

MONTHS

WATER SPORTS

1 MONTH

GYM/SPA4

MONTHS

TRANSPORT1 MONTH

LOCAL TRANSPORT

1 MONTH

SHIPPING3 WEEKS

AMUSEMENT PARK1YR

WATER RIDES1YEAR

DRY RIDES8 MONTHS

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Sight seeing expenses INR 900 to INR 1500

(i) Software Technology Park (having built in electrical & communication ducts,data ports, central air-conditioning )

(ii) Residential enclaves having recreational facilities, transportation facilities,in-built connectivity with bandwidth on futuristic scales, education andhealthcare of international standards with highly focused IT education

(iii) Higher bandwidth, which like oxygen to electronic highway, with satellitecommunication for all islands with WLL as last mile solution,ITadvertisements,powersupply,infrastructureserver,networkcable,server back-up machines,projectors for video-conferencing,videocameras,webcameras,microphones,loudspeakers,printers,power back-up, voice over IP.

(iv) A Modern International Airport, cctv cameras, computers, scanners, mobiletowers, wifi routers to enable wireless connectivity.

(v) A Good Convention Centre, tourist information centres/kiosks 2 disseminate info, setting up a call centre, training centres in hospitality mgt.

(vi) Cruise shipping, inflatable rafts, snow-skis sail board, water sports equipments, snorkelling, sea-bathing, basking in the sun, scuba diving, accommodation facilities.

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(vii)Provision of geo-information or localised weather forecasts, handout brochures and self guided driving tour maps.

(viii)Sending press releases through Pitch Engine, a social media news release tool and an online public relations newsroom.

(ix)Set up information centres, deployment of trained staff, collate or disseminate information, networked reservations.

(x)There is a recent proposal to make Andaman & Nicobar Islands the base for housing the Air & Sea assets of the strategic nuclear command [SNC].This would have a much larger impact on tourism and the movement of both domestic and foreign visitors.

(xi)Providing international connectivity, setting up a call centre-a cost effective means that can be accessed from all tourist destinations and the entry points, setting up Tourist Information Centres/Information kiosks at important tourist destinations in India, training centres in hospitalilty management.

(xii)Networked reservation system with the mainland, use of spy gadgets like poison Tipped umbrella, Dart gun etc

Medium term investment plan(6-10 years) in lakhs

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Transport infrastructure 40

Accomodation projects 3650

Tourism products 650Others[tourists information centres,wayside amenities etc]-

5

Total 4345

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Human Resource

RECRUITMENT

In recruitment our company is adopting new and modern strategies for the betterment of our organization.

We are focusing on recruiting our employees both internally and externally.

Internally -

Transfers Promotions (through Internal Job Postings) Re-employment of ex-employees.

Externally –

Scouting E –recruitment

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Employee exchanges Recommendations Educational institutions Employee agencies

SELECTION

Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of people.

Preliminary Interviews

Application blanks Written Tests Employment Interviews Appointment Letter Head hunting

B : Different levels of recruitment and selection

Job analysis Job description Persons specification Advertising the post internally and externally Interview process Other selection methods like aptitude test, IQ test,

personality test.

C: efficient and stratergic planning of human resource

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Assessing the current HR capacity.Based on the organization’s strategic plan , the 1st step in the strategic planning process is to asses the current HR capacity of the organization. The knowledge, skills, abilities of our current staff need to be identified.

Forecasting HR requirements Gap analysis Developing HR strategies o support organizational

strategies.

D: techniques opted for selection and recruitment

Assessment centres Selection techniques Ability and aptitude test Interviews Internal recruitment External recruitment Job placement counsellors Job postings

TALENT ACQUISTION OR RETENTION

A : EFFECTIVE PERFORMANCE MANGEMENT STRATERGIES

The basic practices which should be kept in mind in the employee retention strategies are:

1. Hire the right people in the first place. 2. Empower the employees.3. Make employees believe that they are the most valuable assets in the organization.

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4. Have faith in them and respect them.5. Provide them information and knowledge6. Keep providing them feedback on their performance.7. Recognize and appreciate their achievements.8. Keep their morale high.9. Create an environment where the employees want to work and have fun.

b.These practices can be categorized in 3 levels: Low, medium and high level.

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C: employee friendly policies which embark the consistent performance and motivational levels ;-

Employees can experience a peace of mind tto increased productivity and satisfaction by being assured.

Employees with personal life and disability insurance can enjoy additional protection including income replacement in the event of serious illness or disability.

Employees can feel a sense of pride in their employees if they re satisfies with the coverage they receive.

Training, learning and development

a. Training programs On site, interactive training programs with top notch

experts known for their ability to engage audience and build the rapport necessary for learning and measurable results.

Training needs evaluation to determine goals, set objectives benchmark top performers and customise program modules to fit the needs.

Programs that encourage interaction and participation through fun, thought-provoking exercises and role play.

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C; Choosing effective techniques with suitable justification

The training and development activities are now equally important with that of other HR functions. Gone are the days, when training was considered to be futile, waste of time, resources, and money. Now-a-days, training is an investment because the departments such as, marketing & sales, HR, production, finance, etc depends on training for its survival. If training is not considered as a priority or not seen as a vital part in the organization, then it is difficult to accept that such a company has effectively carried out HRM. Training actually provides the opportunity to raise the profile development activities in the organization.

Employee grievance cell

a. Policies and legislations of local jurisdiction

By and large, every employee has the right under labour legislation to join and participate in a trade union of his or her choice. However, labour legislation may sp   Each province has its own labour legislation to govern workers and employers in the province.  However, the federal government has jurisdiction for labour legislation in federally regulated industries, such as banks, air transport and airports, various telecommunications concerns, certain extra-provincial or international industries, and Crown corporations. Specifically define what is an employee and it is important to check the legislation for the particular jurisdiction. For example, in some jurisdictions managers (as defined in the legislation) would not be permitted to join or participate in the trade union. In general, the purpose of labour legislation is to facilitate the relationship between an employer, its employees,

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and a trade union, most notably during union organizing, certification, collective agreement negotiation, strikes and lockouts, and dispute resolution.

The legislation also typically confers penalties on the party that breaches its obligations under the legislation, particularly if the party commits an unfair labour practice or acts discriminatory or in bad faith towards employees who are attempting to exercise their rights under the legislation.

Frequently, regulations are enacted under the legislation to deal with specific rules or procedures

b. Committee should be formed

 There will be a Grievance committee in our organisation

Employee welfare schemes

Organizations provide welfare facilities to their employees to keep their motivation levels high. The employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety.

STATUTORY WELFARE SCHEMES

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The statutory welfare schemes include the following provisions:

1. Drinking Water

2. Facilities for sitting

3. First aid appliances

4. Canteen facilities

5. Lighting

6. Rest rooms

NON STATUTORY SCHEMES

Many non statutory welfare schemes may include the following schemes:

1. Personal Health Care (Regular medical check-ups)

2. Employee Assistance Programs:

3. Harassment scheme

4. Medi-claim Insurance Scheme:

SIX ELEMENTS OF ORGANIZATIONAL STRUCTURE

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Organizational structure determines corporate communication, and the executive and managerial hierarchy, and creates a plan for efficient growth for the future. The six elements of organizational structure come together to create the blueprint for how your company is laid out, and determine how your managerial staffs goes about effecting change in your organization.

Geography

How your organization is structured can depend on how many corporate locations you need to account for in your planning. The more spread out an organization is, the more autonomy each location will need to be given in order for the company to run efficiently. Hierarchy communication is also a challenge when creating an organizational structure over a large geographic area. Managers who report to executives in another location need to establish a clear line of communication in order to receive guidance and instruction.

Number of Employees

A large employee population can necessitate that there be several layers of management for a company to run efficiently. As a company grows, the organizational structure needs to be elastic enough to accommodate more employees and the potential need for a larger management structure.

Product Evolution

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A company may start off with a small line of products that cover a general part of the industry. As the company grows, the need to create specified departments for product development and manufacturing can have an effect on the company's organizational structure.

Distribution of Authority

According to a study done by a group of college students known as Group A-Plus, a company's organizational structure is affected by whether the company wants centralized management or decentralized management. Centralized management keeps all major decisions with one specific executive group, while decentralized management allows company managers to have more say in the decision-making process.

Control

According to Management Guru, a company that requires a higher product quality will have stricter rules and a more regimented environment. This would apply to companies that manufacturer high tech products, hand-crafted products or critical products such as medical equipment. Companies that engage in the mass production of products may not exert as much control over the quality of their products and, subsequently, may create a different organizational structure.

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Marketplace

The marketplace also has a bearing on how a company is structured. For example, a manufacturer may decide to sell products through wholesalers as well as directly to end users. In order for this model to be successful, the organizational structure of the company would need to be set up so as to keep these elements separate, including a separate marketing team and a separate sales force.

C.COMPONENTS OF SALARY

The Salary structure varies company to company based on their C & B policies. Some of the common Pay heads used are

1) Basic

2) HRA

3) Con -

4) Medical Reimbursement-

5) Special Allowance

1) PF

Employee’s Contribution

Employer’s Contribution

2) ESI - Applicable to employees whose Gross Salary is

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less than or equal to Rs.10000

Employee’s Contribution (Emp Cont)

Employer’s Contribution (Emp'r Cont)

PT - It Varies State to state

Net Salary = Gross - PF (Emp Cont) - ESI (Emp Cont) - PT

CTC = Gross + PF (Emp'r Cont) - ESI (Emp'r Cont)

Gratuity = It is payable to the employee who completes 5yrs of service in the organisation. It can be showed as a part of CTC.

If Employees coming under high Salary Then you can again split up the amount in Special Allowance As

1) Food coupons

2) Car Hire

3) Petrol and Maintenance for Car

4) LTA

The Variable Pay % also differs company to company based on the C & B Policy.

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Organisation structure

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Public Relations:

Making A Difference

'What is that life worth which cannot bring comfort to others'

- Dr. S K Burman, founder, Dabur India Ltd.

For growth to be responsible, it should go beyond numbers... It should do good to the society, create a better world. That's the kind of growth that Dabur India Ltd. believes in, and constantly strives for.

At Dabur, our commitment to good governance, ethical conduct and social responsibility is core to our way of doing business, and is strongly aligned with our drive to create and increase value for all stakeholders. We define CSR as conducting business in ways that provide social, environmental and economic benefits for the communities and geographies where we operate.

Dabur’s CSR initiatives are driven through Sustainable Development Society or SUNDESH, an outcome of the vision of Dabur India Ltd founder Dr. S.K Burman.

SUNDESH

Sustainable Development Society (SUNDESH) is sworn to the mission of ensuring overall socio-

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economic development of the rural & urban poor on a sustainable basis, through different participatory and need-based initiatives. It aims to reach out to the weaker and more vulnerable sections -- such as women and children, illiterate and unemployed – of the society.

Through the Centre, dabur india intends to provide proper training and support to enable the visually impaired cope with a competitive work environment, achieve success in pursuing higher education and discover better employment opportunities. The Centre provides free employment-oriented computer training and endeavours to provide placement on successful completion of the program. At present 54 visually challenged are undergoing advanced training in this centre.

  As a part of our CSR in the Nicobar islands we will continue with our existing CSR and our SUNDESH forum to help the people to them have a better living.

A DAISY (Digital Access Information System) books library is available, which can be accessed through membership.

   

'Train the Trainer' courses are available for faculty of other computer institutes for the visually challenged, or for those interested in a similar career.

   

Dabur India hopes that this training program will give the visually impaired an opportunity to improve their software skill sets and helps them take up more challenging

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employment prospects.   

All, especially the visually impaired, who can now tap their inherent potential and develop their computer skills, have appreciated the aims and objectives of this program.

 Discrimination

Dabur India also has policies regarding the discrimination that will be imposed on gender race caste colour, religion, employee relations which will be mandatory for all the employees and workers in our organizations.

Creche’s

Providing crèches for all working women’s wards. As well as education to all those kids who cannot afford it.

Education

Giving education to all the wage workers as well as their kids below the age of 14 years

Giving them the knowledge and skills required for their living.

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Article:

DABUR INDIA IN GREAT NICOBAR ISLANDS 3 August 2011

Dabur India, a more than century old company in the field of food & herbal products and pharmacy, now diversifies into the field of Tourism...

India is rich in heritage and culture but what all have forgotten is that it also has scenic beauty with blue waters amidst the Mother Nature, a coral reef by itself the long forgotten India’s island the Andaman and Nicobar.

Dabur ventures out into the deep islands of the Nicobar with the objective of converting it into world class hot tourist destination.

It will continue with its existing CSR policy against child labour and discrimination.

The entire budget is estimated to be 475 crores. The whole process of construction will go on for three years after which the Great Nicobar islands will be ready to attract tourists all over the world.

The proposal has been sent to the government and it is under consideration. The company is expecting a positive reply from the government as the project is favourable for the district as well.

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