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B 1 management strategies in paint industry - by dilip chenoy

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  • Thank you chairman
  • The 8 th issue is that the supply chain and the sales and service function outside most companies face the problem more acutely .
  • At one level fundamental reforms across the education system, there are many bills for consideration of the Parliament. But the impact of this would take time Second to enhance Government driven vocational training as well as third to increase scale of PPP initiatives to better utilize government infrastructure And fourth to foster Private Sector / Industry participation in skill development – the role of NSDC.
  • The National skill policy of 2009 provides for industry action in skill development. A ten point agenda Conference Board could help adopt and promote an industry code And more importantly encourage people to sign up. For industry perhaps there is no better way to recognise your line mangers and supervisors introduce a new form of ESOP An employee skilling opportunity programme Encourage you colleagues to work with SSC’s and training organisations make it an important part of the learning opportunity
  • Third leadership in policy and advocacy. Promote a new industry encourage members to set up skill centres training at least 1000000 people a year Support sector skills councils industry to recruit people who have SSC accredited certificates. Industry has to insist on first day first hour ready workers . It takes from 50,000 rs to 300000 rs or more to train a worker in house what better way to reduce costs by paying a one months placement fee. An taking the onus to repay the balance amount on behalf of the employee while deducting a small sum from his salary every month ! Encourage contributions to the National Skill Development fund
  • Second One of the barriers to entry is the lack of career paths for individuals people do not want to get stuck at 3000 Rs jobs. We chose the example of a simple person who is an house hold worker can she aspire to become a chef, health care worker or a manager through the skilling process. We need to create a framework for life long learning .
  • Transcript

    • 1. For Private Circulation only   "Management Strategies in Paint Industry, HR in the changed scenario of workforce availability, Talent Pool creation both within and outside the company : Structured approach for sustained Growth“ 25 th Indian Paint Conference 29 January 2011 : Surajkund Dilip Chenoy MD & CEO
    • 2. Agenda The Skills and Competitiveness Challenge New approaches to address the gap What the paint industry could do to lead change
    • 3. Agenda The Skills and Competitiveness Challenge
    • 4. Background -1
      • India is poised for double digit growth
      • Essential pre-requisite - Availability of skilled work force
      • 12.8 million youth enter the job market every year but current capacity of Vocational Training is around 4.3 million annually.
      • 93% of Indian workforce is employed in the unorganized sector who largely remain untouched by formal training
      • Percentage of Work force who receive formal skill training
      • India UK Germany Japan Korea
      • 2% 68% 75% 80% 96%
    • 5. Background – 2 The changing nature of the paint industry
      • Indian Paint industry has to grow 20 – 30 times if per capita consumption reaches global per capita average consumption
      • The ratio of decorative paints vs industrial paints is expected to change in India
      • The way decorative paint is being sold and used is changing
      • Expectation of influencers increasing
      • The business process in the industrial segment may change : Outsourcing is increasing – on line delivery of finished product
      • The after market is becoming significantly large and changing
      • Environment concerns are reshaping industry and providing an opportunity for new product diversification and growth
      • Skill sets required by people across the value chain changing rapidly
    • 6. ..yet the twin challenges of employability and availability
      • Employability of the skilled a challenge
      Only one in four engineering graduates in India Is employable, based on their technical skills, English fluency, teamwork and presentation skills and of the 400000 odd Engineering graduates, who graduate each year, only about 20% is good enough for India Inc. - NASSCOM Availability of the skilled a challenge Financial Times October 6 2010 SMEs are hardest hit by this The crux of the labour problem – the poor employability of many young people –is reflected in the paradox of high unemployment coupled with labour shortages . Despite the ostensibly favourable demographic trends, companies complain of difficulties recruiting and retaining qualified staff, whether civil engineers and software developers or bricklayers, waiters and shop assistants. “We don’t have people to build bridges. We don’t have people to build high-quality buildings. We are bringing in architects and engineers from overseas,” Saurav Adhikari HCL
    • 7. The Skills and Competitiveness Challenge 1
    • 8. The Skills and Competitiveness Challenge 2
    • 9. … .the issue is more acute outside the company
    • 10. ... further there is a huge Incremental human resource requirement this is creating an unprecedented war for talent ! Source: IMaCS analysis for NSDC Industry Incremental requirement (in million) Building and Construction Industry 33.0 Real Estate Services 14.0 Gems and Jewellery 4.6 Leather and Leather Goods 4.6 Organised Retail 17.3 Textiles and Clothing 26.2 Electronics and IT Hardware 3.3 Auto and Auto Components 35.0 IT and ITES 5.3 Banking, Financial Services, and Insurance 4.2 Furniture and Furnishings 3.4 Industry Incremental requirement (in million) Tourism and Hospitality services 3.6 Construction Material and Building Hardware 1.4 Chemicals and Pharmaceuticals 1.9 Food Processing 9.3 Healthcare 12.7 Transportation and Logistics 17.7 Media and Entertainment 3.0 Education and Skill Development Services 5.8 Select informal employment sectors (domestic help, beauticians, security guards) 37.6 Incremental 244
    • 11. Interestingly vocational skills required in large numbers Over 13 million people required incrementally every year in over 90 categories of skills Sector Skills/Qualification Yearly requirement in 00,000 Building, Construction & Real Estate Services Minimally Educated 27.17 Health Care and Service Industry Nurses 6.59 Organised Retail Food and Grocery 6.26 Auto and Automotive Sector Drivers 3.62 Food and Processing Sector Bread & Bakery 3.22 Transportation, Logistics, Warehousing and Packaging Warehouse Workers 3.17 Banking and Financial Service Sector Sales & Marketing 2.35 Organised Retail Consumer Durables, Home Appliances 1.99 Media and Entertainment Industry Television & Films 1.95 Textile Industry Sericulture 1.64 Furniture and Furnishing Stitching, Sewing, Stuffing, Threading 1.53 Education and Skill Development Sector Teachers in School Education 1.49 Furniture and Furnishing Carpenters 1.35 Leather and Leather Goods Industry Flaying and Curing 1.33 Food and Processing Sector Meat & Poultry Processing 1.3
    • 12. … and the need for huge capacity addition to meet future demand Privately owned ITCs *Includes ministry of housing and urban poverty alleviation, textile, health and family welfare, food processing industries, and others **Assuming that the existing workforce in the age group of 45-59 will not be re-skilled ***Assuming training fee of Rs 2000 per student for the total demand estimated Source: 11 th five year plan; NCEUS report; McKinsey analysis Business opportunity of ~ 22 Billion $ *** Current capacity in skill development under various schemes, 2008-09 Eight-fold increase in capacity is required to meet aspiration Total capacity in skill development 4.3+ Other private training providers XX Other ministries* 0.3 MSME 0.2 Ministry of rural development 0.2 Ministry of agriculture 0.2 Ministry of women & child development 0.2 MHRD MLE 1.3 0.5 Total demand by 2022 526 Reduction due to ageing/ retirement** 80 Reskilling / up skilling of 90% of existing workforce (460 million) 414 Addition to workforce @ 12.8 million per year 192 Total supply by 2022 @ current capacity 65+ 8x
    • 13. Current quantity, quality and qualification mismatch Training Delivery Certification and Assessment Job Markets Financing Entrepreneurship / Industry Banks Government Industry Students Adapted from a presentation made by Nimesh Mehta at ISB Below the line requirements not met by above the line In house / captive training Youth SME’s find it uneconomical to do this
    • 14. What are the talent pain points of your industry ?
      • Shortage of talent with right competencies
      • Having to invest resources in new hire & training
      • Lack of industry standards to align –competencies, curriculum
      • Lack of industry driven accreditation, certification
      • Competition for talent within industry
      • Competition for talent with other industry segments
      • Lack of in service training capability in MSME (2000 + units)
      • Lack of research on labour market and best practices
      • Lack of trainers
      • Non-alignment with training organisations which do 95% of skill training
      • Passive involvement of industry in the shaping of policies to boost productivity, thereby improving company competitiveness and individual employability.
      • Training people on changing environment, techology, customer service, business needs
    • 15. Challenges of Skills Training in decorative paint sector
      • Workers are seasonal, migrant and itinerant.
      • Place of work, project and their employers, all keep changing.
      • No LMIS in place, no mechanism for supply –demand tracking
      • 90% of workers are up to 5 th fail.
      • Most cannot sacrifice their earning for attending training.
      • Infrastructural investment for training workers in paint sector is huge, being done at individual level. Needs to have synergy / standardized
      • Standard mechanism, certification, accreditation and career pathing for skills training in paint industry non existent
      • Awareness level for need and benefits of training lacking at both employer and worker level.
    • 16. Human resources in a changing environment
      • Technological change
      • Work practice change
      • Environmental change
      • Regulatory change
      • Competitive pressures change
    • 17. Can Industry work together to ensure :
    • 18. Agenda New approaches to address the gap
    • 19. FOCUS AREA FOR NSDC
      • Social Appreciation of Skills As a Livelihood Asset
      • Linking Education to Employability in the Global Knowledge Economy.
      • No One Solution. Every Region demands an innovative approach.
        • Undertake fundamental reforms across the education system (primary, secondary and higher) to
          • improve overall quality / outcomes,
          • increase retention and
          • ensure seamless integration with vocational training
        • Significantly enhance Government-driven vocational training efforts
        • Increase scale of PPP initiatives to better utilize Government infrastructure
    • 20. NSDC created as a part of the government’s co-ordinated action in the skills space Prime Minister’s National Council for Skill Development National Skill Development Co-ordination Board Government Initiatives 17 Central Ministries Private sector initiatives NSDC structure
      • NSDC is a Public Private Partnership created by the Ministry of Finance
      • 51% stake by industry
      • 49% stake by GOI
      • Initial funding of $ 220 Million received from the GOI and parked with the NSDF for use of NSDC
      • Target skilling / up skilling 150 million people by 2022 by fostering private sector participation
    • 21. NSDC to achieve mandate through three key pillars Proactively catalyze creation of large, quality vocational training institutions Create Reduce risk by providing patient capital Improve returns by providing viability gap funding Fund
      • Support systems required for skill development
      • Sector skill councils
      • Quality Assurance
      • Information system
      • Train-the-trainer
      • Set Standards
      Enable Create the vision and help define the path Demonstrate commitment to the purpose Create a viable ecosystem Investor Servicing
    • 22. Private sector response : Status Proposals Number Funding Requirement (Rs Cr) Disbursement till date (Rs Cr) People Trained in Year 1 (Mn) People Trained over a Period of 10 Years (Mn) Training Capacity per Annum (Mn) Proposal Name Approved & Funded 10 160.85 40.19 0.10 7.71 1.31 IIGJJ, B Able, Gram Tarang, iSkill, IAHV, Edubridge, Empower, Pratham, Gras, iStar Approved by Board 12 446.71   0.39 30.88 6.43 Centum, IL&FS, ASDC, CREDAI, MERC, IISD, TMI, Globsyn, Everonn, JobCorp, IIJT (TeamLease) Talent Sprint Total 22 607.56 40.19 0.49 38.59 7.74  
    • 23. State-wise District-wise Spread of Centers by 2012* Districts that would be covered in the next ten years by 14 of the 22 proposals States Districts Covered AP 23 23 Arunachal 16 1 Assam 27 1 Bihar 38 7 Chattisgarh 18 4 Delhi 9 5 Haryana 21 10 HP 12 11 GOA 2 1 Gujarat 26 20 J&K 22 1 Jharkhand 24 8 Karnataka 30 17 Kerala 14 3 MP 50 22 Maharashtra 35 31 Manipur 9 1 Meghayala 7 1 Total States Districts Covered Mizoram 8 1 Nagaland 11 1 Orissa 30 17 Pondichery 4 1 Punjab 20 16 Rajasthan 33 15 Sikkim 4 1 TN 32 22 Tripura 4 1 UP 71 32 Uttr 13 8 WB 18 11 Andaman 13 6 Chandigarh 1 1 Dadra 1 0 Daman&Diu 2 0 Lakshdweep 1 0 Total 639 300
    • 24. 17 of the 20 priority sectors already impacted within approved and funded proposals Note : Sectors not covered include,, Furniture &Furnishings, Education, Transportation &Logistics                
    • 25. Quality :NSDC is mandated under the National Skill Development Policy 2009, to constitute Sector Skill Councils
    • 26. Quality : Current Status of SSCs by Industry Sectors 23 SSCs at various stages of Formation Paint Industry ?
    • 27. Qualification : An alternate educational system School Dropouts 10 th Pass / ITI Diploma Advanced Specialization Professional Degree Job Role Apprentice Welder Level I Welder 3G Welder 6G TIG Supervisor Employment Opportunity Corner Welding Shops, SME Manufacturing Sector Manufacturing Sector, PSUs Specialized Industry Manufacturing Sector, PSUs Starting Monthly Income (INR) 2,000 – 3,000 3,500 – 4,500 6,000 10,000 10,000 Monthly Income after 5 Years (INR) 5,000 – 6,000 6,000 – 8,000 12,000 – 14,000 50,000 20,000 – 25,000
    • 28. Proposed Ecosystem to align the 3Q’s with employment Banks Training Delivery Certification and Assessment Job Markets Financing Government Entrepreneurship / Industry Industry Students Adapted From a presentation made by Nimesh Mehta at ISB Sector Skills Councils NVEQF Youth
    • 29. Agenda What the paint industry could do to lead change
    • 30. National Skills Policy 2009 : Roles and Responsibility of Industry
      • Identification of competencies and setting up of competency standards
      • Skill demand analysis and curriculum development
      • Facilitating training of trainers
      • Delivery of training, monitoring and evaluation
      • Participation in examination and certification
      • Participation in affiliation and accreditation process
      • Sharing of work place experience, machinery and equipment
      • Support by way of physical, financial and human resources
      • Facilitating employment of trained persons
      • Owning skill development activities
    • 31. What companies could do to lead change
      • Set up collaborative skill development centres
        • Partner NSDC
      • Support existing and future skill development initiatives
        • Demand ready to work persons
        • Agree for payment of placement fees
        • Introduce a Employee Skill Opportunity Programme
          • Encourage employees to act as trainers, assessors
          • Reward life long leaning
          • Refund training fees to encourage retention
          • Support participation in the Sector Skills Councils
      • Reach out to the skill development centres with your requirements
      • Lead setting up of Sector skills Councils
    • 32. Leadership in creating a sustainable learning environment
      • Advocacy
        • Promote a new industry – Skills Training
        • Partner to encourage scale; move to sustainable models
      • Supporting the skills initiative
        • Setting up Sector Skills Councils
        • Bring partners, world class content and practices to India.
        • Assist in building a new eco system : Trainers, Assessors, information systems,
        • Insist on certified employees,
        • Promote internships ,placement, funding – fee & loan repayment
      • Introduce an awards for painters and a version of Master Chef India for painters !
    • 33. Opportunity through defining Life long learning paths Resident Manager Housekeeper 2 Housekeeper 1 Domestic help cleaner Housekeeper Resident Ayah Baby care Childcare worker 2 Childcare worker 1 Childcare Palliative care worker Infirm Eldercare Eldercare worker 2 Eldercare worker 1 Eldercare Chef Cook assistant 2 Cook assistant 1 Kitchen helper Cook Candidate registration Domestic worker orientation course BASIC LITERACY Levels of Progression Level 1 Level 2a Level 2b Level 3
    • 34. NVEQF with industry inputs on qualifications and certifications will facilitate employability after skilling
    • 35. Pathways for Qualifications proposed in NVEQF
    • 36. Support of industry players, industry body and other stakeholders
    • 37. Workforce planning an example
      • CPSISC is in the process of preparing a Workforce Development Strategy to support those industries within our coverage. As part of this process we have prepared a ‘Green Paper’ for distribution to industry stakeholders.
      • This paper is not policy; it is for consultation with stakeholders. We want you to read the Green Paper and tell us if you think we are asking the right questions, via a feedback survey.
      • This feedback will be further informed by the results of data received through a Workforce Intelligence Survey.
      • The information gathered by these two surveys will be used in the development of a final ‘White Paper’.
      • We ask you to do three things to further this process:
      • 1. Download CPSISC's Workforce Development Strategy here . 2. Once you have read the Green Paper, complete the feedback survey: Click here to take survey 3. Complete the Workforce Intelligence Survey: Click here to take survey
      •   When our Workforce Development Strategy is finalised, it will be posted on our website; all survey respondents will also be notified of its availability by email.
    • 38. Workforce planning
      • the demand for future skills and what planning for the future entails;
      • improving the value from the skills investments being made in the existing and future workforce, through greater attention to how skills are used in a workplace setting;
      • joining up separate areas of government action on workforce participation, social inclusion and innovation, so that policies on skills connect with wider economic, employment and social strategies .
    • 39. Workforce planning
    • 40. Partnering with NSDC
    • 41. Select case study – IIGJJ
      • Rs 5.38 Cr, 50% Grant and 50% Debt at 6%
      • 1 centre at SEZ in Jaipur
      • No of people trained in 10 years – 18000
      • Capacity created per annum – 2000
      Description Elements Deal value and size Business model Progress till date
      • Collaboration between state, industry and NSDC; ;land provided by state
      • Targeted to train craftsmen for high end gems and jewelry design through adequate investment in R&D
      • Targeted to train people in the full value chain of gems and jewelry design with focus on quality management
      • ~ 100 students already enrolled
    • 42. India would have one of the largest working population India’s Biggest Advantage: One of the youngest populations in the world Percentage of population aged 65 and older Source: United Nations, 2008
    • 43. " The future depends on what you do today."  —   Mahatma Gandhi [email_address]
    • 44. NSDC : E cosystem Interventions
      • Sector Skills Councils
          • Standards
          • Accreditation of training providers
          • Assessments
          • Certification
      • Loans for vocational courses
          • Banks
          • Micro Finance Institutions (MFI’s)
      • Qualifications framework
          • Career pathways
          • Lifelong learning
      • Train the trainer
          • New trainers
          • Refresher courses for trainers
      • Labour market information systems

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