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

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

17. Can Industry work together to ensure :

18. Agenda New approaches to address the gap

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

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

39. Workforce planning

40. Partnering with NSDC

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]