Furniture Furnishings

Click here to load reader

  • date post

    24-Oct-2014
  • Category

    Documents

  • view

    83
  • download

    2

Embed Size (px)

Transcript of Furniture Furnishings

Disclaimer for the Skill Gap Report: NSDC engaged IMaCS (ICRA Management Consulting Services Limited) to prepare this report, which is based on independent research and analysis done by IMaCS. This report is not based or derived from any other report or research paper. Any similarity with any other paper may purely be a co-incidence. All rights reserved. All copyright in this report and related works is solely and exclusively owned by NSDC. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of NSDC.This report is for information purposes only. While due care has been taken during the compilation of this report to ensure that the information is accurate to the best of IMaCSs and NSDCs knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. IMaCS and NSDC neither recommend nor endorse any specific products or services that may have been mentioned in this report and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed in this report. Neither IMaCS nor NSDC shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this report.

Human Resource and Skill Requirements in the Furniture & Furnishing industry

Studyonmappingofhumanresourceskillgapsin Indiatill2022

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Table of Contents1. Environment Scanning and Competitiveness of Furniture and Furnishing industry ............ 5 1.1. 1.2. Overview ................................................................................................................................. 5 Furniture industry.................................................................................................................... 5 Domestic Consumption ................................................................................................... 5 Exports ............................................................................................................................ 6 Imports ............................................................................................................................ 6 Key Segments ................................................................................................................. 7 Key demand drivers ........................................................................................................ 8 State wise production of Furniture ................................................................................ 10 Key Players ................................................................................................................... 11 Key Success Factors...................................................................................................... 11 Key Risk Factors ........................................................................................................... 12

1.2.1. 1.2.2. 1.2.3. 1.2.4. 1.2.5. 1.2.6. 1.2.7. 1.2.8. 1.2.9. 1.3.

Furnishing industry ............................................................................................................... 12 Domestic Consumption ................................................................................................. 12 Exports .......................................................................................................................... 13 Imports .......................................................................................................................... 14 Major centres for Furnishings ....................................................................................... 14 Key Players ................................................................................................................... 15 Key Success factors ...................................................................................................... 16 Key Risk factors ............................................................................................................ 16 Demand drivers ............................................................................................................. 17

1.3.1. 1.3.2. 1.3.3. 1.3.4. 1.3.5. 1.3.6. 1.3.7. 1.3.8. 2.

Human Resource and Skill Requirements ................................................................................ 18 2.1. Human Resource and Skill Requirements in Furniture industry........................................... 18 Overview of Employment in Furniture industry ........................................................... 18 Value chain and core processes .................................................................................... 18 Profile of Human resource in Furniture industry .......................................................... 22 Skill requirements and skill gaps in the Furniture Industry .......................................... 24 Current Training & Education Infrastructure ................................................................ 31 Emerging trends in skill requirements .......................................................................... 32

2.1.1. 2.1.2. 2.1.3. 2.1.4. 2.1.5. 2.1.6. 2.2.

Human Resource and skill requirements in Furnishing industry .......................................... 33 Overview of Employment in Furnishing industry ........................................................ 33 Value chain and core processes .................................................................................... 34 Profile of Human resource in Furnishing industry ........................................................ 37

2.2.1. 2.2.2. 2.2.3.

Page 2 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

2.2.4. 2.2.5. 2.2.6. 2.3.

Skill requirements and skill gaps .................................................................................. 39 Current Training & Education Infrastructure ................................................................ 45 Emerging trends in skill requirements .......................................................................... 45

Projected Size and Human Resource Requirement ............................................................... 46 Projected Size and Human Resource Requirement for Furniture Industry ................... 46 Projected Size and Human Resource Requirement of the Furnishing Industry ............ 47 Focus areas where skill building is required ................................................................. 48

2.3.1. 2.3.2. 2.3.3.

List of FiguresFigure 1: PFCE on Furniture, Furnishings & household equipment (in Rs crore at current prices) ....... 5 Figure 2: Furniture Exports (Rs. crore) ................................................................................................... 6 Figure 3: Furniture Imports (Rs crore) .................................................................................................... 7 Figure 4: Furniture market Consumer segments ..................................................................................... 7 Figure 5: Percentage Share of Women Employment Out of Total Employment in organised sector .... 9 Figure 6: Share of different states in Furniture Production................................................................... 10 Figure 7: PFCE on Furnishings (at current prices) .............................................................................. 12 Figure 8: Furnishings exports (Rs. crore) ............................................................................................. 13 Figure 9: Demand Drivers of Furnishing industry ................................................................................ 17 Figure 10: State wise employment in Furniture industry ...................................................................... 18 Figure 11: Value chain of Furniture industry........................................................................................ 19 Figure 12: Share of different raw materials in Furniture manufacturing .............................................. 19 Figure 13: Manufacturing process of Wood Furniture ......................................................................... 20 Figure 14: Manufacturing process of Metal Furniture .......................................................................... 21 Figure 15: Manufacturing process of Plastic Furniture......................................................................... 22 Figure 16: Distribution of workers in wood furniture production ........................................................ 23 Figure 17: State wise employment in Furniture industry ...................................................................... 33 Figure 18: Value Chain of Furnishing industry .................................................................................... 34 Figure 19: Production processes in Furnishing ..................................................................................... 34 Figure 20: Value chain of mattress industry ......................................................................................... 36 Figure 21: Manufacturing process of coir Mattress ............................................................................. 37 Figure 22: Profile of people employed ................................................................................................. 39 Figure 23: Projected Size of Furniture Industry (Rs. billion) ............................................................... 46 Figure 24: Skill Pyramid for the Furniture and Furnishing Industry .................................................... 48

Page 3 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

List of TablesTable 1: Key players in the Furniture industry ..................................................................................... 11 Table 2: Key Success factors for the Furniture industry ....................................................................... 11 Table 3: Key Centres for Furnishings ................................................................................................... 14 Table 4: Key players in Furnishing industry ......................................................................................... 15 Table 5: Distribution of Human Resource across functions in Furniture manufacturing ..................... 22 Table 6: Educational profile of workforce in Furniture manufacturing ................................................ 23 Table 7: Skill requirements and skill gaps in the Furniture Industry .................................................... 24 Table 8: Training courses for Furniture industry .................................................................................. 31 Table 9: Types of Stitches..................................................................................................................... 35 Table 10: Product categories in Furnishing .......................................................................................... 36 Table 11: Distribution of Human Resource across functions in Furnishing manufacturing ................. 37 Table 12: Educational Profile of the workforce in Furnishing Manufacturing ..................................... 38 Table 13: Skill requirements and gaps in Furnishing industry ............................................................. 39 Table 14: Human resource requirement in Furniture Industry (in 000s) ............................................. 46 Table 15: Function-wise distribution of incremental human resource requirement (in 000s) ............. 47 Table 16: Incremental human resource requirement in the Furnishing industry (in 000s) .................. 47 Table 17: Function-wise incremental human resource requirement (in 000s) .................................... 47 Table 18:Education-wise incremental human resource requirement (in 000s) ................................... 48 Table 19: Focus areas where skill building is required (human resource requirement in 000s).......... 49

Page 4 of 50

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

1. E Environm ment Sca anning a Com and mpetitiven of F ness Furnitur and re Furnishin indus F ng stry1.1. Overview wThe dom mestic Indian Furniture a Furnishi market is estimated to be around Rs 69,000 crore in n and ing d 2007-08 accounting for around 1 % of the G 8 1.5 GDP. The dom mestic Furnishing marke is valued at Rs 20,750 crore in 2 et 2007-08. India is a key player in p internati ional Home F Furnishing m market and E Exports of Fu urnishings we worth Rs 7,400 in 200 ere 07-08. The dom mestic Furni iture market is estimated to be wort Rs 48,200 crore with exports of Rs 1485 t d th 0 h crore in 2007-08. In ndia is a net i importer if F Furniture wit imports w th worth Rs 1,79 crore for the same 91 time per riod. The Fur rniture industry gives direct employm to 3 lakh people.1 ment h

1.2. Furnitur industr re ry1.2.1. Dom mestic Cons sumptionThe pri ivate final consumption expenditu (PFCE) on Furnitu n ure ure, Furnishi ings and household equipme was Rs 84,907 crore in 2007-08.T PFCE on Furniture is estimated t be Rs 48,2 crore ent The n s to 227 and on F Furnishings to be Rs 20 0,750 crore f the year 2007-08. Th Compoun for he nded Annual Growth l Rate (CA AGR) in PFCE on Furni iture, Furnish hings and ho ousehold equ uipments wa 17% for th period as he from 2003-04 to 200 07-08. Figure 1: PFCE on Furniture, Furnishings & househo equipmen (in Rs cro at curren prices) n s old nt ore nt Share of Furni iture and Fu urnishings84,90 07 Household Equipment 19%

CAGR 17% % 61,367 7 52,817 45,099

73,579

Furnishing F 24%

Furniture 57%

2003-04

2004-05

2005-06 6

2006-0 07

2007-08

Source: C Central Statistic Organisatio (CSO), IMaC Analysis cal on CS1

IBEF rep on Furnitur industry port re

Pag 5 of 50 ge

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

1.2.2. Exp portsThe Fur rniture expor are a sma percentag of the do rts all ge omestic prod duction. India Furniture exports as e were wo Rs. 1,48 crore in 2 orth 85 2007-08. How wever, the ex xport value h grown w a CAGR of 30% has with R from 2003-04 to 200 07-08.The ke export ma ey arkets were US, EU, UAE and Austra U E alia. Figure 2: Fur F rniture Expo (Rs. cror orts re)

Share of Furnit ture exports sCA AGR 30%991 995 1,486 1,350

522

Furn niture of o other mate erials 11 1% Plastics P fu urniture 12%

Metal furniture 38% Wood furniture e 39%

2003-04

2004-05

2005-06

2006-07

8 2007-08

Source: D DGFT, IMaCS A Analysis

The Furn niture export were dom ts minated by me and woo furniture w etal od which accoun nted for arou 80 % und of the to Furniture exports. otal e

1.2.3. Imp portsIndia is a net import of Furnitu in value terms. The Furniture imp ter ure F ports amount to Rs 1,7 crore ted 790 -08. The imp ports have gr rown with a CAGR of 50 from 200 0% 03-04 to 2007-08. Majori of the ity in 2007imports were from C China, Malay ysia, Italy an Germany While the bulk of Furn nd y. niture impor rted from o e of et, m Germany are targeted e China to cater to the lower end o the marke European imports from Italy and G towards high end of the market. M Metal and w wood Furnitur accounted for around 6 re d 60% of the im mports.

Pag 6 of 50 ge

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

Figure 3: Fur F rniture Impo (Rs cror orts re) Share of Furnitu imports ure 1,791CAGR 51% %

1,355

re Furnitur of other r material ls 13% Plas stics furniture 6% 26

Metal M fu urniture 23%

824 4 522 2 346 6

Wo ood furn niture 38 8%200304 200405 200506 200607 200708

Source: D DGFT, IMaCS A Analysis

1.2.4. Key Segments yThe key segments based on usage are h y household furniture, o f office furni iture, and contract manufa acturing. Ho ousehold seg gment accou unted for 65% of the Furniture m market. The contract segment caters prima t arily to hotel restaurant etc. ls, ts, The offi furniture segment ca fice e aters to the commercial and office space. Offic Furniture includes ce seating, operative d desking, exec cutive furnit ture, others (cabinets an office sto nd orage, filing systems, wall urniture for c communicati areas). 40 of the of ion 0% ffice Furnitur market is operative re o wall-to-w units, fu desking. Office Fur . rniture is ch haracterized by contem mporary aesth hetics and s style combin with ned function nality. The co oncept of mo odular furnitu has caugh on in the I ure ht Indian marke et. Figure 4: Furnitu market Consumer seg e ure C gments

Of ffice furn niture 20 0%

Household furniture, 65 f 5 %

Contract manufacturi m i ng, 15%

Pag 7 of 50 ge

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Home Furniture can be further segmented based on usage: Kitchen Furniture, Bedroom and Living room Furniture. The concept of modular kitchen is fast catching on in India. Childrens Furniture is a whole new concept developed in tune with todays market demands and is a fast emerging segment. With the comforts of children being the top priority in almost all homes, a lot of thought goes into furnishing their rooms. The Home Furniture segment can also be segmented based on buyer profile in terms of 'first home' buyers and replacement buyers.

1.2.5. Key demand driversReal estate/housing boom The key factor driving the demand for Furniture and Furnishings is the expansion of housing in both the major and smaller cities in India. Growth in both, housing and commercial development will have a positive effect on furniture demand, driven by the need to furnish new constructions. There will be demand for over 24.3 million new dwellings for self-living in urban India alone by 20152. The rapid growth of the Indian economy has had a cascading effect on demand for commercial property to help meet the needs of business, such as modern offices, warehouses, hotels and retail shopping centres. Growth in commercial office space requirement is led by the burgeoning outsourcing and information technology (IT) industry and organised retail. For example, IT and ITES alone is estimated to require 150 million square feet across urban India by 2010. Similarly, the organised retail industry is likely to require an additional 220 million square feet by 20103. Growth in Tourism and Hospitality industry Indian tourism industry has expanded rapidly over the past few years and is well poised to grow at a faster pace in the coming years underpinned by the government support, rising income level and various international sports events. Government of Indias Incredible India campaign launched in 2002 has also been quite successful. The Travel & Tourism Competitiveness Report 2009 brought out by World Economic Forum, ranks India as 11th in the Asia-Pacific region and 62nd overall in a list of 133 assessed countries in 2009, up three places since 2008.The growth in both domestic and inbound international tourism has aided the growth of hotel industry. The foreign tourist arrival (FTA) has increased from 2.4 million in 1998 to 5.37 million in 2008. FTA registered a growth of 5.6% in 2008 over 2007. The domestic tourist visits to all States/UTs have risen from 168.2 million in 1998 to 526.6 million in 2007 at a compounded annual growth rate of 13.5%.

2 3

'Housing Skyline of India 2007-08', Indicus Analytics IBEF

Page 8 of 50

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

It is estim mated that b 2010, an a by additional 125,000 hotel rooms would be required to cater to the needs r d d t of travel and tourism The Furniture industry would bene through the subseque demand for Hotel l m. y efit ent f Furnitur 4 re. Organis Retail sed Internati ional retailer have main entered in the high-en market, th rs nly n nd hrough joint ventures wit Indian th retailers and manufa acturers. The have targ ey geted the pre emium segm ments for these turnkey solutions. s The pen netration of o organised retail in the sec is more pronounced in the premi ctor ium category such as y high end modular ki d itchens, desig gner furnitur bathroom accessories etc. The ma domestic players re, m s ajor in this se egment inclu Godrej L ude Lifespace, Fa abindia, Hom Town, Sty Spa, and W me yle Welspun. Increasi Private Final Consu ing umption Exp penditure (P PFCE) on Furniture and Furnishin ng The PFC on Furnishing and Fu CE urniture has been increas sing on acco ount of rising disposable incomes g as well as changing lifestyles d to increa g due asing partici ipation of w women in urb workfor and a ban rce young d demography. Share of Women Em f mployment o of Total Employmen has been s out nt showing an i increasing tr rend over the year in line with the changi mindsets and increasi educatio levels amo women. This has rs h ing ing on ong resulted in women h having more impact on the purchase decision o household products as well as e of d s emand of pr roducts such as apparel, footwear, ey yewear, jewe ellery etc. It has led to increased i rising de disposab househol incomes f working couples and lifestyle changes. Wom have less time to ble ld for men s spend on household chores whic has led to increased de n ch emand of hou usehold dura ables and out of home t food ser rvices. Figure 5: Percenta Share of Women Em age f mployment Out of Total E Employment in organise sector t ed 18.1 18.7 19

17 14.4 15.2 15.8

17. .6

1992

1994

1996

1998

200 00

2002

2004

2006

Source: M Ministry of Sta atistics and Pr rogramme Imp mplementation & Ministry of Labour, IMa Analysis f aCS

4

IBEF Furniture repor rt

Pag 9 of 50 ge

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

In India, the demog graphic divid dend which manifests in the proport h n tion of work king age grou of 15up s reasing stead from 62.9% in 2006 to 68.4 % i 2026.5The age group of 15-40, dily 6 in e o 64 years will be incr which i the target segment f most of the marke is for f eters, accoun nted for 61 of the 46 crore 1% 4 economi ically active population in 20076. T young de e The emography h in turn a has aided the de emand of aspiratio and lifesty products. on yle

1.2.6. Stat wise prod te duction of F FurnitureThe Fur rniture indust is domina try ated by the u unorganised sector which accounts fo around 15 of the h or 5% market. The share of unorganise segment is higher in ca of wood furniture. Th Furniture industry f ed s ase he e d few have become famous for their exquis carving, inlaying, e site is spread across the country. A f centres h turning and lacqueri ing. Indian st tates well kn nown for wo oodwork incl lude Gujarat, Jammu & Kashmir, , K esh rala. The sta wise sha in Furnit ate are ture product tion is show in the wn Punjab, Uttar Prade and Ker followin figure. M ng Maharashtra and Tamil Nadu account for ne l early 50% of Indian Furniture F producti ion. Figure 6: S Share of diffe ferent states in Furniture Production i e n

Andhra a Pradesh h 6% Ut Pradesh ttar 7%

Oth hers 16 6% Maharashtra M 35%

Rajastha an 7% Gujarat 8%

Ta amil Na adu 13 3% Karnataka a 8%

Source: Annual Survey of Industry, IMa Analysis aCS

5 6

Econom Survey 20 mic 007-08 ILO Lab abour statistics s

Page 10 of 50 e

Human Resource and Skill Requirements in Furniture & Furnishing Industry

1.2.7. Key PlayersSome of the major companies in this segment are: Table 1: Key players in the Furniture industry Company Nilkamal Godrej Home Centre Home Town Damro Wipro Zuari Products Plastic Furniture Home & office Furniture Furniture & Furnishing Furniture & Furnishing Home & office Furniture Office Furniture Home & office Furniture Category Manufacturer/Retailer Manufacturer/Retailer Retail Retail Manufacturer/Retailer B2B Manufacturer/Retailer

Note: This is not an exhaustive list

1.2.8. Key Success FactorsTable 2: Key Success factors for the Furniture industry

Innovative designs and solutions to cater to the premium segment both in the home and office segments.

C

Offer complete solutions and concepts, rather than piece-meal sales

C

Invest in brand building: Brand values have increasingly played a vital role in consumers purchase decisions in Furniture and Furnishings. A strong brand is a must to succeed in the office Furniture segment. Penetrate rural market: The urban area has been the focus of organised retail which has led to increased competition. Rural India is home to 720 million consumers across .6 million villages. 17 % of these villages account for 50 % of the rural population as well as 60 % of rural wealth

C

I

Page 11 of 50

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

C I

Critical

Important

1.2.9. Key Risk Facto y orsThreat of im mports: The Furniture im mports in th country h he have been gr rowing stead dily. The imported pr roducts are offering stif competition in both the premium and mass market ff m s Furniture seg gment. The increase in prices o commodit e of ties such as steel, glass, wood and plastic is a cause of , concern for the Furniture industry. E e Environmenta concerns a likely to a al are affect the av vailability of wood. economic slo owdown will affect the d l demand in the domestic market e m The continuation of the e

1.3. Furnishi indust ing try1.3.1. Dom mestic Cons sumptionThe pri ivate final consumption expenditur (PFCE) on Furnitur Furnishings and Household n re re, Equipme was Rs 84,907 crore in 2007-08 The PFCE on Furnishi ents e 8. E ings is estim mated to be Rs 20,750 R crore for the year 20 r 007-08.

Figure 7: PF F FCE on Fur rnishings (at current pri t ices)

Share of Furniture and Furnishin ngs84,90 07 CAGR 17% 61,367 52,817 45,099 73,579 9

d Household Equipmen nt 19% Furniture 7% 57 Furnishing F 24%

2003-04

2004-05

2005-06 6

2006-0 07

2007-08

Source: C Central Statistical Organisation (CSO), IMaC Analysis n CS

Page 12 of 50 e

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

Major Furnishing pr roduct catego ories include: Furnishing fabrics :up g pholstery, cu urtain material, curtains, drapes, doo curtains an fabric or nd blinds Bedding : m mattresses an pillows nd Bed linen :s sheets, pillow wcases, blankets, and qui ilts Table linen : tablecloth table napk n hs, kins, fabric place mats/settings Bath linen : towels and washcloths ehold textile items as sh e hopping bags laundry ba shoe bag covers fo clothes s, ags, gs, or Other house and/or Furn niture, flags, m mosquito nets and sunshades

1.3.2. Exp portsngs ere s e kets Exports of Furnishin items we worth Rs 7,400 crore in 2007-08. The major export mark were Furnishing e exports have been stagnating over th last few years on ac e he ccount of US and EU. The F ed on ernational ma arket. increase competitio in the inte Fig gure 8: Furn nishings exp ports (Rs. cro ore) S Share in Exp ports CAGR 10.6%7,646 7,826 7,428

Mat ttresses 0.5% 0

Blanke ets 2.8% % Bed B table, toilet and k kitchen lin nen 26.9%

5,892 4,962

Others O 61 1.7%

200304

200405

200506

200607

8 200708

Curt tains 8.1 1% Sour DGFT, I rce: IMaCS Analy lysis

Others include pr s roducts such as Mosquito nets, Terry towels, Nap o pkins, Pillow covers, Bed spreads, d pillow cases, table cl loth etc. and accounts for 62 % of the exports. r e

Page 13 of 50 e

Human Resource and Skill Requirements in Furniture & Furnishing Industry

1.3.3. ImportsFurnishing imports are quite insignificant compared to the domestic market size. Furnishing imports were less than Rs 400 crore in 2007-08.

1.3.4. Major centres for FurnishingsTable 3: Key Centres for Furnishings Centre Brief Description Karur is known for the production of pillow covers, bedspreads as well Karur as kitchen and table linen. The home textile producers of Karur specialise in certain finishes, such as PVA, starch, stain repellent, water repellent and silicon finish. Some producers have begun the use of organic cotton and the use of different fabrics such as polyester, silk and poly cotton The city of Panipat located in the state of Haryana is a major producer of Panipat woollen home textile products. Producers in Panipat have of late started experimenting with different fabrics such as polyester, silk and poly silk. Some producers have also started the use of natural fabrics such as bamboo and soya. Home textile producers in Chennai usually source raw materials from Chennai Karur, to which value addition is undertaken. These producers are able to deliver better quality products within a shorter period of time with the benefit of technology and the services of experts. Delhi has emerged as one of the major production and export centres for Delhi home textiles. It has an efficient infrastructure and easy availability of skilled manpower. Most of the producers in Delhi source their raw material from Panipat, to which value addition is done. Mumbai is also one of the major production and export centres for home textiles. Producers in Mumbai also source raw material from places such as Karur, Salem, Erode and Bangalore and add value to it. On account of Mumbai the high operating costs in Mumbai, several producers have established plants in surrounding areas of Vapi and Solapur. The home textile producers in Mumbai have carved out a niche for themselves, particularly in case of bedspreads, pillow and cushion covers and bathroom textiles. Jaipur It is an important centre for the production of home textiles, especially those using the traditional techniques of tie-and-dye, block printing and

Page 14 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Centre

Brief Description appliqu. Cannanore, located in South India, is another hub that is well known for the production of home textiles. About 60% of the textile production done in this area is home textile. Home textile producers in Cannanore

Cannanore

are beginning to use fabrics such as cotton viscose, silk and cotton. Producers here are also adding value with the help of embroidery, bead work and sequin work.

Mirzapur and Badhohi are small cities located in Uttar Pradesh, which Mirzapur and Badhohi are major centres for the production of floor coverings and carpets.

1.3.5. Key PlayersSome of the major companies in this segment are: Table 4: Key players in Furnishing industry Company Welspun Home Centre Home Town Bombay Dyeing Fabindia Products Terry towels, Bed Linen Furniture & Furnishing Furniture & Furnishing Bed linen, towels, Category Manufacturer/Retailer Retail Retail Manufacturer/Retailer

Bed, bath, table and kitchen Retailer linen, upholstery fabric,

curtains, floor coverings Kurl-On Mahajan Limited Mattresses Overseas Cushions & Throw Pillows, KitchenLinens Manufacturer Manufacturer

Page 15 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

1.3.6. Key Success factorsThe key success factors for the Furnishing industry are: Increasing productivity by leveraging technology Investing in brand building activities which in turn would improve the profitability Focusing on international markets other than the US and EU Obtaining international certifications to overcome entry barriers in the international market. Investing in IT would enable more efficient operations. Focus on product innovation to cope with the rising competition from other countries in the international market.

1.3.7. Key Risk factorsThe major risk factors for the industry are: Dependency on EU and US markets Raw material prices: Failure of cotton crop and government policy in terms of minimum support prices and export incentives for cotton can push up the cotton prices and affect the entire value chain. The Man Made filaments/fibres are crude derivatives and move in line with crude oil prices Exchange rate fluctuations: Strengthening of Rs against international currencies would affect the cost competitiveness in the international market Protectionist measures: Countries are increasingly protecting their domestic industries from surging imports. After Turkey and Egypt in the last year, Peru is now planning to impose a safeguard on cotton yarn imports. Brazil has imposed anti-dumping duties on viscose yarn imports from Asia. Subsidies/government support in competing countries: Chinese government has raised the export rebate rate for textiles and apparels thrice, from 11% at the beginning of 2008, to 15% by February 2009, the highest level in 10 years. Vietnamese government has agreed to provide support to the countrys T&C industry at a ratio of 40 Vietnamese dong per dollar of export value. Cash subsidy of 15% of the fabric cost is given to exporters in Bangladesh who source fabric locally. Economic Slowdown: The continuation of the economic slowdown will impact demand, both in the domestic and international markets.

Page 16 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

1.3.8. Demand driversThe demand drivers of the Furnishing industry are similar to the Furniture industry and are depicted in the following figure. Figure 9: Demand Drivers of Furnishing industry

Growth in Organised furnishing Retail Growth in Tourism and hospitality industry

Young Demography

Rising share of women of workforce

Real estate/housing boom

Demand Drivers

Growth in Exports

Page 17 of 50

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

2. Hu uman Re esource a Skil Requir and ll rements2.1. Human Resourc and Ski Requir n ce ill rements in Furnitu indust n ure try2.1.1. Ove erview of Em mployment in Furnitu industry t ure yThe emp ployment in Furniture in ndustry is est timated arou 3 lakh in 20067. Ma und n aharashtra an Tamil nd Nadu ac ccount for 40 0%. Figure 10 State wise employment in Furnitur industry 0: t re

Andhra Prade A esh 4% Uttar Pradesh U 6% Gujarat G 6%

Othe ers 16% % Maharashtra M 26%

Tamil Nad du 14% Rajasthan 12% %

Kerala 7%

Karnataka 9%Source: Annual Survey of Industry and I IMaCS Analysi is

2.1.2. Val chain an core pro lue nd ocessesThe valu chain of t Furniture industry is depicted bel ue the e low. The typ pical processes involved based on the type of raw mate e erials is also indicated. T wood fu o The urniture indu ustry has num mber of manu ufacturer cum reta ailers. These units are typ pically locate in a cluste ed er.

7

IBEF re eport on Furni iture industry

Page 18 of 50 e

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

Figu 11: Value chain of Furniture ind ure e F dustry

Raw materialsWood Steel/Other Metals Glass Plastic/Pol ly UrethaneOther Furniture component manufacture ers Furnishings Wheels,Arm re ests etc.

Man nufacture rs

Whol lesalers

Retail lers

End customer

Various types of raw materials a used for F w are Furniture ma aking in Indi The key r materials include ia. raw wood, m metal and pol lymers.

Figure 12: Share o different r materia in Furnitu manufac e of raw als ure cturing thers Ot 5% 5 Plastic 10%

Metal M 25% 2

Wood 60%

Source: IB Furniture report BEF

Page 19 of 50 e

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

Figure 1 Manufac 13: cturing proce of Wood Furniture ess

Processed w wood logs

Processing g

Finishing

Wood F Furniture Processed wood: ditional wood furniture is made from natural wood such a Teak, Mah den e w as hogany & Rosewood R The trad and plyw wood. Comp posites of w wood such a particle boards, whic are manu as b ch ufactured fro wood om particles such as w s, wood chips, sawmill sha avings, or ev saw dust and a syn ven t, nthetic resin or other suitable binder, are also used. A major di isadvantage of particleboard is that it is very prone to t on oloration due to moisture, particularly when it is n covered with paint or another e y not r expansio and disco sealer. T Therefore, it is rarely used for outdoo furniture. India is one o the larges consumers of wood or I of st in South East Asia. India impor wood from countries such as Ma h rts m alaysia, Indon nesia, Myanmar, and Ivory Co oast, etc. Processe wood is s ed sourced from the raw wo processors in the form of rectang m ood m gular sheets, logs and other sh hapes. The ty of wood depends on the specific ype n cation of the retailer/cust tomers which in turn depends on the cost and durability factors. The wood has to be f s . free of defec such as swelling, cts s termites, and other d defects. Processing: The woo is further processed to improve its texture. The surface of t wood is smoothened. Various od o s e the . components of the Furniture ar made and the same are assemble afterward Wood is cut into re d a ed ds. profiles base on the des ed sign requirem ments. The worker has to ensure mini w imum wastag during ge various p this step Both hand tools and machines are u p. used for cutt ting purpose. Minute aspe of the design are . ects best suit for hand cutting. Hol and slots are made in the vario compone and the same are ted les s nto ous ents assembled together. The process sing of wood which tran d nsforms the w wood to the skeleton Fur rniture is done by carpenters.

Page 20 of 50 e

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

Finishin ng: The asse embled Furn niture is poli ished to imp prove the loo and feel of the wood Common finishing ok d. material include st ls tains, basecoats, wash coats, glaze fillers, se es, ealers, highl lights, enam mels, and topcoats During fin s. nishing, paste or diluted paste fillers may be req e s quired to lev open gra vel ained and closed g grained surfa aces. Stains a applied to penetrate th wood and produce a d are o he d desired colou Some ur. stains ar solvent bo re orne such as p penetrating o and alcoh while oth stains are water borne Sealers oil hol, her e e. and tran nsparent films are shellac varnishes, or lacquers. Shellac is a natural resi which is combined cs, , in c with a solvent such as alcohol. Varnishes slow dryi h s, ing coatings, are typica ally of polyu urethane. s lude turpentine and xylo Solvents used in lacq ol. quers include acetone e Solvents found in varnishes incl and ethy alcohol. Th yl hinners used in lacquers include toluene, benzene and xylene Major type of glue d e e. es adhesive in the wood prod es ducts indus stry include hot melt e ts, polyviny acetates (PVA), yl ureaform maldehyde (U resins, a contact adhesives. This is follow by addit UF) and T wed tion of Cush hions and other fur rnishing mat terial Metal a and plastic/p /polymer fur rniture are parts of th value ch he hain of ligh engineer ht ring and plastic/p polymer pro ocessing ind dustries resp pectively. Manufacturing process o Metal and plastic M g of d Furnitur are shown as below. re Metal F Furniture 4: turing proce of Metal F ess Furniture Figure 14 Manufact Metal (Stee Aluminium el, etc)

Forgi ing

Cutting

Finishing F

Assemb bling

Fabrication F

Various metals and alloys such as cast iro steel, alu h on, uminium, etc are used b c. based on the desired e inium may be used for non load c b carrying part of the ts performance characteristics. For e.g. alumi e ht n ere w eferred wher greater strength is re furniture as it is ligh weight in nature whe as steel would be pre required d.

Page 21 of 50 e

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

Plastic F Furniture Figure 15 Manufactu 5: turing proces of Plastic Furniture ss

Po olymer gr ranules

Melting

Mouldi ing

Fini ishing

Polymer such as hig density Poly-ethylene and Poly-ur rs gh e rethane are u used for mak king plastic Furniture. F Compon nents made o polymers such as hand rest, wheel base etc. ar also used along with Furniture of d l re F made of wood and m f metal. The po olymer granu are melte and mould through Injection mo ules ed ded oulding.

2.1.3.

Pr rofile of Hu uman resour in Furn rce niture indus stry

tribution of human resource across functions in Furniture m n manufacturin is depicte in the ng ed The dist followin figure. Bu of the pe ng ulks eople (80%-9 90%) people are engaged in the produ d uction functio Also, on. the smal units do no have explicit demarcat ll ot tion of functi ions for sourcing, sales et tc. Ta 5: Distr able ribution of H Human Resou urce across functions in Furniture m f n manufacturi ing Fun nctions Prod duction Sou urcing/Procur rement Sale es Other functions* *Source: I Industry input IMaCS ana ts, alysis *Other F Functions inclu Accounts, Administrati and Desig etc. ude , ion, gn

Percen ntage share 80%- 9 90% 2%-3% % 2%-3% % 5%-10% %

The dist tribution of h human resou urce within p production function of w fu wood based f furniture is shown in s the follo owing figure. .

Page 22 of 50 e

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

Fi igure 16: Dis stribution of workers in wood furnit f ture producti ion

UnskilledSemiskilled workers 30% Carpenters 40%

Furnit ture Finish hing /Assemb bling worke ers 30% %Source: I Industry input IMaCS ana ts, alysis

In

cas se

of

un norganised

and

smal ll

scale

units

the

percentag ge

of

the e

Shop

floor/Op perators/Wor rkers/Helpers can be as h s high as 95%. The edu ucation-wise distribution of workforc in Furnitu manufact ce ure turing segme is provided in the ent figure be elow. Aroun 95% of the workforces education profile is cla X, XI or b nd e p ass below. Table 6: Educatio e onal profile of workforce in Furnitu manufact e ure turing Educationa Level al Class X,XII or below I Diploma/IT TI Others (MB BA,CA, Engi ineers, Gradu uates)Source: I Industry input IMaCS ana ts, alysis

Perc centage share 90% %-95% 2%-5% 2%-5%

Page 23 of 50 e

Human Resource and Skill Requirements in Furniture & Furnishing Industry

2.1.4.

Skill requirements and skill gaps in the Furniture IndustryTable 7: Skill requirements and skill gaps in the Furniture Industry

Function

Level

Skills Required

Skill Gaps

Knowledge of various types of wood (Teak, Rosewood, etc.) , plywood, polymer/plastic ,Metal components, furnishing material (Upholstery, Stuffing material such as foam) and chemicals used in processing (Thinners, Adhesives etc.) Knowledge of various types of Purchase Manager wood defects - swelling, holes, fragile edges, knots etc. Quality of the wood is important as any defects at this stage would affect Procurement the quality of the final product. Awareness of the latest price trends. The Furniture market is very cost competitive and hence minimising the raw material cost is important for furnishing manufacturers. Negotiation and communication skills for negotiating pricing and delivery terms. It maybe required to negotiate higher discounts if the furnishing fabric and other raw materials are not of the specified quality. Ability to calculate the requisite amount of wood and stuffing material required based on the order size and likely wastage. Insufficient knowledge of Inadequate knowledge of various types of raw materials such as wood, plastic & metal components and quality parameters. Negotiation and communication skills.

Page 24 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level Purchase associate/ executive

Skills Required Knowledge of various types of wood defects and other quality parameters. Liaison with the component manufacturers and ensure that the components are made to the specifications. This is required for companies which source non-wood components from outside.

Skill Gaps various types of wood defects and other quality parameters.

This function is critical for manufacturers cum retailers. Understanding of various aspects of customer behaviour. Sales Manager/Store Manager For e.g. the profile of customer as user/buyer will have impact on his selection of furniture. Detailed product knowledge to train the sales associates. Knowledge of offerings of Insufficient ability to customise the offerings to the requirements of the customers. Lack of soft skills for interacting with institutional customers.

competing stores/brands. Ability Sales to communicate the

product knowledge in such a manner that an average customer can understand the same. Negotiation and communication skills - These skills are critical for firms focussed on office and institutional furniture. Ability to handle multiple accounts/customers Understanding of customer

Page 25 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level

Skills Required requirements of design and quality Basic computer skills. Should be able to communicate the product offerings through emails. Knowledge of English is desirable for personnel in firms focussing on office Furniture segment.

Skill Gaps

Ability to assist in the sales process In depth knowledge of the store offerings. Should be aware of Sales Executive the offerings of competing stores/brands. Ability to work closely with other functions such as production Time management skills to handle multiple orders at the same time. Basic computer skills - Should be able to communicate the product offerings through emails. Knowledge of English is desirable for firms focussing on office Furniture segment. Lack of good communication skills and interpersonal skills Insufficient ability to communicate the quality price relationship to the customers as they do not understand the quality aspects. Less than adequate ability to customise the offerings to the requirements of the customers.

This function is critical for

.

Page 26 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level

Skills Required Manufacturer cum retailers. Design and develop Furniture designs. Modify existing designs to suit the current trends in the market.

Skill Gaps

Insufficient knowledge of latest design trends Creative skills required to come up with fresh designs is inadequate

Design

Designer

Should be creative and work with number of materials to enhance the appearance of the Furniture. Keep abreast with the latest trends in the market - should be aware of the designs, materials and colours which are in vogue. Knowledge of CAD /AUTOCAD Basic computer skills

In-depth Knowledge of Furniture manufacturing processing, finishing and inspection methods Process improvement skills waste control, finding solutions Production Manager to maintenance and engineering related problems as most of the units do not have a dedicated Production R&D for process improvement. Cost reduction through above mentioned measures aids in improving profitability.

Lack of adequate knowledge of line balancing, work study, and Quality Control (this is because a large number of managers have been elevated by experience rather than by formal training). The person employed picks up the requisite skills with experience. Lack of man management skills to manage the shop

Page 27 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level

Skills Required Man management skills to manage shop floor workers who are mostly minimally educated. Awareness of quality requirements across various stages of production. Knowledge of Hindi/other vernacular languages is a must to interact with the shop floor workers.

Skill Gaps floor people.

Knowledge of production process involved in wood work such as cutting, sanding, polishing. Ability to estimate the number of pieces that can be cut from one piece of wood. Ability to minimise wastage Should be able to train and groom new recruits who do not have the relevant experience. Line Supervisor/ Floor supervisor Knowledge of different type of wood characteristics Knowledge of chemicals (Thinners, dyes, Varnishes, Adhesives, etc.) used during finishing and processing to guide the shop floor workers. Knowledge of various cutting and processing tools (saw machines, hammers, spanner,

Lack of knowledge of various chemicals Lack of man management skills to manage the shop floor people. Ability to minimise waste by using the raw, semi finished articles by design modification. Knowledge of various types of chemicals.

Page 28 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level

Skills Required drill machines, spray painting machines) to guide the shop floor workers Good understanding of chemicals (Thinners, dyes, Varnishes, Adhesives etc.) used during finishing and processing. Good understanding of stitching processes (for cushions, etc.). Should be able to reuse/repackage faulty furniture articles by altering the design, finish. Man management skills to manage the shop floor where most of the workers are minimally educated - Should be able to motivate the workers in the challenging work atmosphere as the demand is seasonal and order driven. Also, the work environment has high levels of air and noise pollution. Knowledge of Hindi/other vernacular languages is a must to interact with the shop floor workers.

Skill Gaps

Good machine control, knowledge of various cutting and processing tools (saw machines, hammers, spanner, drill machines, spray painting

Lack of proper knowledge of machine operations Inadequate ability to work across different machines Knowledge of various type

Page 29 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level

Skills Required machines) Ability to size timber, mark and drill holes as per the design specifications of the various Furniture articles. Should be able to identify and use the right tool for a particular operation. Knowledge of chemicals

Skill Gaps of chemicals Ability to make simple Furniture items without supervision.

Operator

(Thinners, dyes, Varnishes, Adhesives etc.) used during finishing and processing. Should be able to work on the various components of the Furniture being manufactured. Knowledge of various joints and their appropriate applications. Should be able to work on half lap, dove tail, tenon, mortise and other type of joints. Should be able to minimise wastage and dispose the waste materials. Ability to maintain various tools used in Furniture manufacturing. Ability to manufacture simple Furniture articles without much supervision. Should have good hand-eye coordination to work on intricate designs. Physical stamina as the work involves heavy articles. The person should not have any

Page 30 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level

Skills Required respiratory ailments. Discipline at shop floor, punctuality and regular attendance at workplace. Knowledge of maintenance requirements of various machine and tools.

Skill Gaps

2.1.5. Current Training & Education InfrastructureDirectorate General of Employment and Training (DGET) offers the following Furniture specific courses. Table 8: Training courses for Furniture industry Name of Course Minimum Educational Qualification Duration of Training Test/Course Fee (Rs) 2000 Basic Wood Work (Training 5th Standard 270 hours Fee) + 800(Test Fee)* 2000 Wooden Furniture (Training 5th Standard 270 hours Fee) + 800(Test Fee)*

S. No

Institution/Framework

1

Modular Employable Skills (MES) course

2

Modular Employable Skills (MES) course

Craftsmen Training 3 Scheme (CTS) Carpenter 8th Standard 1 year -

4

Craftsmen Training Scheme (CTS)

Cane Willow and Bamboo

8th Standard

1 year

-

Page 31 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

S. No

Institution/Framework

Name of Course Work Interior Decoration and Designing

Minimum Educational Qualification

Duration of Training

Test/Course Fee (Rs)

5

Craftsmen Training Scheme (CTS)

10th Standard

1 year

-

6

Apprenticeship Training Scheme (ATS)

Carpenter

10th Standard

3 years

-

7

Apprenticeship Training Scheme (ATS)

Furniture and Cabinet Maker 8th Standard 3 years -

*Candidates belonging to SC/ST category and women are given 25% exemption in fee.

2.1.6. Emerging trends in skill requirementsChange in Industry Structure The Furniture manufacturing industry is predominantly in the unorganised sector. The organised sector accounts for around 15% - 20% of Furniture manufacturing.8 The share of the organised sector is expected to rise which would result in greater focus on standardisation and quality aspects. The consolidation has already begun in at the retail end with number of players in Furniture retailing space. Increased usage of Polymers and Metals As mentioned earlier, India is one of the largest consumers of wood in South East Asia. India imports wood from various countries such as Malaysia, Indonesia, Myanmar, and Ivory Coast, etc. MDF boards are imported from Europe, soft and hard wood are imported from Russia and other South East Asian countries. However, the supply of wood would be constrained and would not be able to keep pace with the increase in demand of Furniture. This would result in increased usage of other materials such as polymers, metals, glass etc. Also, non wood Furniture would help to make Furniture more8

Annual Survey of Industry, IMaCS Analysis

Page 32 of 50

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

affordab and cater to the entry level segm ble r y ments. Hence, the production and des sign personn would nel need to p possess the r requisite kno owledge to w work with these materials. . Focus on solution se n elling The reta ailers would have to fo d ocus on offe ering comple solutions for office and home Furniture ete s F requirem ments. Hence Manufactu e, urers cum re etailers woul require pe ld eople with k knowledge of various f Furnitur categories. re . Level of technology f As ment tioned earlie most of t units in F er, the Furniture ma anufacturing do not hav the requisite scale. g ve Therefor they do no have the a re ot ability to abso the latest technology and work w manual and small orb t with a tools. Th level of te he echnology is expected to go up in line with cons s o solidation in the industry and the n y operator have to be imparted the knowledge of automati tools. rs e e ic

2.2. Human R Resource and skill requirem e l ments in F Furnishin industr ng ry2.2.1. Ove erview of Em mployment in Furnish t hing industr ryThe Fur rnishing man nufacturing industry em mploys 8-9 Lakh people.9 The state wise distrib L . bution of employm ment is show in the fol wn llowing figu Tamil Nadu, Uttar P ure. N Pradesh and Haryana acc count for nearly 50% of the em mployment in the Furnish n hing industry y. Figure 17 State wise employment in Furnitur industry 7: t re

4% Rajasthan, 4 Kerala, 7%

Others, 16 6%

Tamil Nadu, 23% Uttar adesh, 16% Pra

Andhra Pradesh, 7% P Gujar 8% rat, Maharash htra, 9%

Ha aryana, 10%

Source: Annual Survey of Industry, IMa Analysis aCS

9

Source: ASI, IMaCS Analysis :

Page 33 of 50 e

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

2.2.2. Val chain an core pro lue nd ocessesFigur 18: Value Chain of Fu re urnishing in ndustry

The Furnishing ind dustry is a p part of the textile value chain. Th home furn he nishing prod ducts use of erials such as cotton, silk and fabric made of sy k c ynthetic fibre and inclu es udes both variety o raw mate knitted a woven fa and abrics. Most of the furnishi articles s f ing such as curta ains, bed she eets, etc. hav relatively lesser value addition ve e ufacturing an processin stage. The processed f nd ng e fabric underg goes cutting, stuffing , after the fabric manu and finis shing to mak the requisi furnishing article. ke ite g The vari ious activitie involved in furnishing manufacturi are shown in the follo es n ing n owing figure. Figur 19: Produ re uction proces in Furnishing sses

Cutting g

Stichin ng

Stuffin ng

Finishi ing

Page 34 of 50 e

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Cutting The fabric is cut as per the defined pattern. Markings are made on the spread fabric which is then cut/chopped in the cutting machine. Wastage reduction is a key consideration during this step. Stitching A number of stitch and seam- types, and sewing machines are used for stitching the furnishing item. Stitch classification is based on the structure of the stitch and method of interlacing. Machine in each class may have the capability of producing several different types of stitches depending on the machine structure and how it is set and threaded. Table 9: Types of Stitches Stitch Class 100 (Chain Stitch) 200 (Hand Stitch) 300 (Lockstitch) 400(Multi chain Stitch) 500(over-edge stitch) 600(Flat Seam Stitch)Source: ATDC

A group of stitches with specific purpose is called seam, or in other words a line of stitches. Seams are categorised into 8 classes and designated according to the types and minimum number of components within the seam. Assembling/Stuffing This step is required in case of furnishing articles where foam, cotton or other stuffing materials are used. The stuffing material is added to the fabric skeleton and compressed. This is followed by stitching to close/seal the furnishing article.

Finishing Finishing involves the following operation: Removal of excess thread Washing

Page 35 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Pressing/ Ironing Folding. The value chain of the Furnishing industry varies depending on the product. As mentioned above, the various product categories in furnishings include: Table 10: Product categories in Furnishing Product Category Furnishing fabrics Products Upholstery, curtain material, curtains, drapes, door curtains and fabric blinds Bedding Bed linen Table Linen Bath Linen Others Mattresses and pillows Sheets, pillowcases, blankets, plaids, duvets and quilts tablecloths, table napkins, fabric place mats/settings Towels & Washcloths Shopping bags, laundry bags, shoe bags, covers for clothes and/or Furniture, flags, mosquito nets and sunshades

The value chain of the mattress industry is shown below Figure 20: Value chain of mattress industry

Rawmaterial manufacturers Foam Coir Tickingfabricand others

Retailer Mattress manufacturer MattressDealer Bed manufacturer/reta iler Endcustomer

Page 36 of 50

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry

Figure 2 Manufa 21: acturing process of coir M Mattress

Coconut coir rope and l latex

Untwistin the ng coir r

Shee eting

La atex appli ication

Pressin ng

Vulcani izing (hot ov ven)

Trimm ming to require size ed

Addi ition of fo oam

Stitching and finishin ng

2.2.3.

Pr rofile of Hu uman resour in Furn rce nishing indu ustry

The dist tribution of human resource across functions in Furniture m n manufacturin is depicte in the ng ed followin figure. A large propo ng ortion of the human reso ource (about 80%) peopl are engage in the le ed producti function. Also, the sm units do not have ex ion . mall o xplicit demar rcation of fu unctions for sourcing, s sales etc c. Tab 11: Distribution of H ble Human Resou urce across functions in Furnishing manufacturing f g Functions F Production P Sourcing/Pro S ocurement Sales/Mercha S andising Other functio O ons*Source: I Industry input IMaCS ana ts, alysis *Other F Functions inclu Accounts, Administrati and Desig etc. ude , ion, gn

Per rcentage sha are 75% %-80% 2% %-3% 3% %-5% 5% %-10%

Page 37 of 50 e

Human Resource and Skill Requirements in Furniture & Furnishing Industry

In case of unorganised and small scale units the percentage of the Shop floor/Operators/ Workers/Helpers can be as high as 95%. The education-wise distribution of workforce in Furniture manufacturing segment is provided in the figure below: Table 12: Educational Profile of the workforce in Furnishing Manufacturing Educational Level Engineers Diploma or equivalent certification by other agencies ITI and other vocational courses/Certificates Other graduates CA/MBA/etc. 12th/10th standard/Minimally EducatedSource: Industry inputs, IMaCS analysis

Percentage share

3%-5% 8%-10%

2%-3% 85%-90%

Profile of people employed The typical profile of people employed in production function, which is the dominant activity in the furnishing manufacturing, is shown in the following figure.

Page 38 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Figure 22: Profile of people employed

Engineer / 5-10 years experience

Manager

Engineer / Diploma/Minimally educated with 5-10 years experience

Line/Shift superisor

Line/Shift superisor

ITI/Diploma/ ATDC Pass out /Minimally educated with 3-5 years experience

Supervisor

Supervisor

Supervisor

Minimally Educated

Opertator

Opertator

Operator

Source: Industry inputs, IMaCS analysis

2.2.4.

Skill requirements and skill gapsTable 13: Skill requirements and gaps in Furnishing industry

Function

Level

Skills Required

Skill Gaps

Knowledge of various types of fabrics (type of material, count/picks, dye requirements) and stuffing material (cotton, kapok, foam, fibrefill.) Knowledge of various types of fabric defects such as breakage of threads, missing Purchase Manager threads, stains, patches and shade variation etc. Quality In-depth knowledge of the various types of fabric and quality parameters. Negotiation and communication skills.

Page 39 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level

Skills Required of the fabric is important as any defects at this stage

Skill Gaps

Procurement

would affect the quality of the final product. Awareness of the latest price trends in the fabric market. The furnishings market is very cost competitive and hence minimising the raw material cost is important for furnishing manufacturers. Negotiation and communication skills for negotiating pricing and delivery terms with the fabric manufacturers.

Ability to calculate the amount of requisite quality Purchase associate/ executive fabric and stuffing material required based on the order size and likely wastage. Knowledge of various types of fabric defects and other quality parameters. Liaison with the fabric manufacturers and fabric processors. This is required for companies which source the fabric and do the processing through other processing units. Insufficient knowledge of various types of fabric defects and other quality parameters.

Page 40 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level

Skills Required

Skill Gaps

Understanding of various production activities as the merchandiser is the interface between the buyer and the Senior Merchandiser/ Sales Manager company Negotiation and communication skills. These skills assume more significance for export oriented units. Knowledge of foreign languages such as French for Merchandising/ Sales better co-ordination with the buyer. Ability to handle multiple accounts/customers. Thorough understanding of costing. Understanding of buyer requirements of design and quality. Basic computer skills. Should be able to communicate the product offerings through emails.

Lack of soft skills for interacting with buyers in the international market. Knowledge of languages is limited to English. Inadequate understanding of various factors affecting costing.

Junior Merchandiser/ Merchandising executive/ Sales Executive

Understanding of various production activities. Ability to work closely with other functions such as production, purchase, etc. Time management skills to

Understanding of various production activities.

Page 41 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level

Skills Required handle multiple orders at the same time. Basic computer skills

Skill Gaps

Design and develop furnishing designs according to buyer requirements. Modify existing designs to suit the current trends in the market. Design Designer The designer should be able to understand the impact of stuffing material on the final appearance of the furnishing article. Keep abreast with the latest fashion trends in the key markets. Should be aware of the colours, contours which are in vogue. Knowledge of Styling, Elements of Design, Basics of Costing, Fabric Study, Pattern Making.

Understanding of buyer requirements is inadequate which leads to number of iterations before the sample is accepted. Knowledge of latest fashion trends in the international markets is limited

In-depth Knowledge of production process and inspection methods Process improvement skills Production Manager waste control, finding solutions to maintenance and engineering related problems as most of the units do not

Inadequate knowledge of speciality fabrics Lack of adequate knowledge of line balancing, work study, and Quality Control (this is because a large number of managers have been elevated by experience

Page 42 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level

Skills Required have a dedicated R&D for

Skill Gaps rather than by formal training).

Production

process improvement.. Cost reduction through above mentioned measures aids in improving profitability. Man management skills to manage shop floor workers who are mostly minimally educated. Awareness of quality requirements across various stages of production. Knowledge of Hindi/other vernacular languages is a must to interact with the shop floor workers.

Knowledge of production processes such as cutting, stuffing, stitching and Line Supervisor/ Floor supervisor inspection methods Knowledge of different type of fabrics and stuffing materials. Ability to provide on the job training to the new recruits Man management skills to manage the shop floor. Knowledge of Hindi/other vernacular languages is a must to interact with the shop floor workers.

Lack of knowledge of various types of sewing machines Lack of soft skills to manage the shop floor people.

Page 43 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level

Skills Required

Skill Gaps

Good machine control. Knowledge of machines used for cutting, sewing etc. Knowledge of threading of sewing machine, stitching on different shapes, seaming Operator components together to the design specifications. Knowledge of maintenance requirements of various machines and tools. Discipline at shop floor, punctuality and regular attendance at workplace. Good eye sight and hand-eye co-ordination

Lack of proper knowledge of sewing machine operations and different types of seams and stitches Ability to work across different machines is missing

Quality requirements are all the more important for companies focussing on international markets. Even Quality control/ Assurance Manager small quality issues can lead to cancellation of order. Understanding of the customer requirements by interacting with the merchandiser. Quality Knowledge of international standards is desirable.

Knowledge of international quality standards is a significant gap.

Knowledge of in line and final quality testing procedures.

Knowledge of cause effect relationships of the various defects.

Page 44 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Function

Level Quality control Executive

Skills Required Must be able to understand and prevent defects such as loose threads, stains, inconsistent filling, inconsistent stuffing etc. Should be able to understand the various quality parameters.

Skill Gaps

2.2.5.

Current Training & Education Infrastructure

There are very few courses which exclusively cater to the requirements of the Furnishing industry. However, courses are available which impart training/education in textiles. Also, very few of the training initiatives are targeted at the shop floor level. The newly inducted workers learn through informal training and learning from the experience of the existing work force. The ATDC, ITIs and NIFT annually train up to 50,000 workers. However, the students passing out of these courses are mostly absorbed in the garmenting sector.

2.2.6. Emerging trends in skill requirementsThe availability of merchandising and designing skills would be crucial for increasing share in export markets, tapping the potential in new markets and catering to the luxury /high end of the domestic market. Currently, design is not a focus area for the furnishing companies. The industry is likely to get increasingly consolidated in terms of scaling up of units, especially the units which are focussed on export markets. Furnishing retail would see increased penetration of organised retail and the focus would be on selling complete solutions i.e. selling multiple and related furnishing articles under one roof.. Currently, Furnishing industry comes under the purview of Contract Labour Act, 1970 which prohibits contract labour for the work that is perennial in nature. The exporters find it difficult to manage the seasonal and order based volatility in demand on account of this. Change in the

Page 45 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

current regulations can lead to opening up of more employment opportunities. Also, the current regulations prohibit women from being employed in night shifts. More flexible labour regulations will positively affect the industry. The scheme of integrated textile parks and various SEZs would also affect the availability of labour.

2.3. Projected Size and Human Resource Requirement2.3.1. Projected Size and Human Resource Requirement for Furniture IndustryThe size of the Furniture industry is expected to grow from Rs. 594 billion currently to about Rs. 3,200 billion by 2022, growing at a CAGR of 13%10. Figure 23: Projected Size of Furniture Industry (Rs. billion)3,500 3,000 2,500 2,000 1,500 1,026 1,000 594 500 2008 Source: IMaCS analysis 2012 2018 2022 3,223

13%2,127

This industry would employ about 1.3 million persons by 2022, leading to an incremental employment generation of about 0.9 million persons. Table 14: Human resource requirement in Furniture Industry (in 000s) 2008 FurnitureSource: IMaCS analysis

2012 571

2018 963

2022 1,271

Incremental 892

380

10

Our overall approach to macro-economic modeling and forecasting is explained in a separate annexure

Page 46 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Table 15: Function-wise distribution of incremental human resource requirement (in 000s) Function Incremental human resource requirement (in 000s) 9 27 310 233 233 36 45 892

Designing Sourcing Production

Carpenters Finishing and other assembly line workers Others (helpers)

Sales Admin and other support TotalSource: IMaCS analysis

The requirement for the skilled workforce consisting of carpenters and other operators engaged in finishing of furniture would constitute 0.5 million persons.

2.3.2. Projected Size and Human Resource Requirement of the Furnishing IndustryThe Furnishing Industry is expected to grow at a CAGR of about 13% and clock Rs. 1,36,000 crore in revenue by 202211. This industry is likely to result in the creation of 2.5 million additional jobs till 2022. Table 16: Incremental human resource requirement in the Furnishing industry (in 000s) 2008 Furnishings 1,075Source: IMaCS analysis

2012 1,618

2018 2,728

2022 3,602

Incremental 2,526

The profile of persons to be engaged in terms of function-wise and education-wise details is given below. Table 17: Function-wise incremental human resource requirement (in 000s) Sales and others (merchandising) Procurement Production Others (Purchase, logistics, admin) 177

Furnishing industry 126 Incremental human resource requirementSource: IMaCS analysis

76 2,526

2,147

11

Our overall approach to macro-economic modeling and forecasting is explained in a separate annexure

Page 47 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Table 18:Education-wise incremental human resource requirement (in 000s) Engineers and Diploma Furnishing industry 101 Incremental human resource requirement 2,526 76 202 2,147 Graduate ITI 12th Standard

Source: IMaCS analysis

2.3.3. Focus areas where skill building is requiredGiven that the industry would required a varied profile of skill sets, the following figure presents an overview of the profile of skill requirements as derived from human resource requirements across different sectors of the Furniture and Furnishing Industry. Figure 24: Skill Pyramid for the Furniture and Furnishing Industry

1%

Skill Level 4 (skills which are highly specialised involving research and design)

7%

12%

Skill Level 3 (skills which require long drawn preparation as demonstrated by acquisition of degrees, and involve highly technical or i l i ) Skill Level 2 (skills which require technical training inputs, knowledge of complex operations and machinery, skills of supervision) Skill Level 1 (skills which can be acquired with a short/modular and focussed intervention and thereby enhancing employability of those with minimal education)

80%

Source: Industry inputs, IMaCS analysis

The skill pyramid, in summary, captures where the Furniture and Furnishing Industry stands relatively in terms of skills (a function of activity, educational requirements, and amount of preparatory time required to inculcate a specific skill) as compared to all other industries. As can be observed, Skill Levels 1 and 2, have the highest incremental requirement of human resource. This indicates the requirement for persons trained in carpentry, stitching and sewing operations in the Furniture and Furnishing Industry.

Page 48 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Table 19: Focus areas where skill building is required (human resource requirement in 000s) Sector Areas where skill building is required Carpenters Operators (finishing, etc.) Stitching, sewing, stuffing, threading Incremental human resource requirement (in 000s) 310 233 2,147 2,691

Furniture Furnishings TotalSource: IMaCS analysis

The total requirement of human resource across the above areas where skill building is required is about 2.7 million persons till 2022.

Page 49 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

This report has been prepared by ICRA Management Consulting Services Limited (IMaCS). IMaCS is a multi-line management and development consulting firm headquartered in India. It has an established track record of over 15 years in consulting across various sectors and countries. IMaCS has completed over 950 consulting assignments and has worked in over 30 countries across the globe. Through the process of carrying out several assignments over the last decade and half, IMaCS has accumulated considerable analytical and consulting expertise, backed by the following capabilities: Deep understanding of policy formulation. Extensive and organised database on several sectors. Knowledge of key factors of success in different projects and programmes. Ability to research emerging trends in the economy, as well as in specific sectors. Insight into different programmes and organisational processes. Ability to carry out economic analysis, build quantitative and financial models to project future performance and identify imperatives. Ability to identify the various types of risks and suggest appropriate strategies to mitigate the same.

The Education and Skills practice at IMaCS focusses on identifying skill gaps, mapping future skill requirements, and formulating strategies to address them. Our service offerings encompass diagnosis, design and implementation of education and skill development interventions for government and private sector.

R. Raghuttama Rao Managing Director IMaCS 4th floor, Electric Mansion Appasaheb Marathe Marg, Prabhadevi Mumbai 400 025 Tel: 91 22 3047 0047, Fax: 91 22 3047 0081 Email: [email protected]

M. Sairam Head Process Consulting IMaCS 5th floor, Karumuttu Centre 634, Anna Salai, Nandanam, Chennai 600 035 Tel: 91 44 2434 0043, Fax: 91 44 2434 3663 Email: [email protected]

Page 50 of 50

National Skill Development Corporation D-4, Clarion Collection, (Qutab Hotel) Shaheed Jeet Singh Marg New Delhi 11 0 016 Tel : 011 46 56 0414 Fax : 011 4656 0417 Email : [email protected]

www.nsdcindia.org