construction matl bldg hardware

7/29/2019 Construction Matl Bldg Hardware

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Construction Materials andBuilding HardwareSector (2022)

A Report


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Disclaimer for the Skill Gap Report:

NSDC engaged IMaCS (ICRA Management Consulting Services Limited) to prepare this report, which is based on independent researchand analysis done by IMaCS. This report is not based or derived from any other report or research paper. Any similarity with any otherpaper 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 bereproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether ornot transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party exceptwith 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 andNSDCs knowledge and belief, the content is no t 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 responsibi lityfor 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 guidancetaken from any portion of this report.


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Human Resource and Skill

Requirements in the

Construction Materials

and

Building Hardware Sector

Study on mapping of human resource skill gaps in

India till 2022


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Human Resource and Skill Requirements in the Construction Materials and Building Hardware Sector

Page 2 of 63

Table of Contents

1. Environment Scanning and Competitiveness of Construction Materials and BuildingHardware sector .................................................................................................................................... 5

1.1. Overview of Construction Materials and Building Hardware ................................................ 51.2. Cement .................................................................................................................................... 61.3. Steel....................................................................................................................................... 121.4. Construction Equipment ....................................................................................................... 141.5. Demand Drivers of Construction Materials and Building Hardware Industry ..................... 171.6. Key Success Factors and Risk Factors .................................................................................. 181.7. Outlook for Construction Materials and Building Hardware Industry ................................. 21

2. Human Resource and Skill Requirements in the Construction Materials and BuildingHardware Sector ................................................................................................................................. 23

2.1. Current Employment in the Construction Materials and Building Hardware Sector in India23

2.2. Major Regions of Employment Concentration ..................................................................... 242.3. Functional Distribution of Human Resources in the Construction Materials and BuildingHardware Sector ................................................................................................................................ 272.4. Distribution of Human Resources by Education Levels in the Construction Materials andBuilding Hardware Sector ................................................................................................................. 292.5. Skill Requirements and Skill Gaps in the Construction Equipment Segment ...................... 312.6. Skill Requirements and Skill Gaps in the Cement Segment ................................................. 382.7. Skill Requirements and Skill Gaps in the Steel Segment ..................................................... 472.8. Emerging Trends in Skill Requirements ............................................................................... 552.9. Projected Human Resource Requirements in the Construction Materials and BuildingHardware Sector ................................................................................................................................ 582.10. Skill Pyramid .................................................................................................................... 612.11. Focus Areas for Skill Building .......................................................................................... 62


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List of Figures

Figure 1: Cement production in India (in Million Tonnes) ..................................................................... 7Figure 2: Domestic cement consumption in India (in Million Tonnes) .................................................. 7Figure 3: Installed capacity in India (in MT) and Capacity utilisation (%) ............................................ 8Figure 4: Production Share of Different Types of Cement for 2007-08 (in %) ...................................... 9Figure 5: Cement exports (in MT) and Export share in total production (%) ......................................... 9Figure 6: Region-wise production of Cement 2007-08 ...................................................................... 10Figure 7: End Usage Pattern for Cement .............................................................................................. 10Figure 8: Value chain for the cement industry ...................................................................................... 11Figure 9: Steel production in India (in MT) and share of world production (%) .................................. 12Figure 10: Apparent consumption of finished steel in India (in MT) ................................................... 13Figure 11: Consumption pattern by end-user industries, 2008-09 ........................................................ 13Figure 12: Share of the ECE Segments ................................................................................................. 16Figure 13: Method of equipment procurement ..................................................................................... 16Figure 14: Coverage in the Steel Segment ............................................................................................ 24Figure 15: Zone-wise distribution of personnel employed in the Cement Segment ............................. 25Figure 16: State-wise distribution of personnel employed in the Cement Segment ............................. 25Figure 17: Zone-wise distribution of personnel employed in the Steel Segment ................................. 26Figure 18: State-wise distribution of personnel employed in the Steel Segment .................................. 26Figure 19: Profile of people employed in the Construction Equipment Segment ................................ 31Figure 20: Profile of people employed in the Cement Segment ........................................................... 38Figure 21: Profile of people employed in the Steel Segment (Manufacture of finished products) ....... 47Figure 22: Skill Pyramid for the Construction Materials and Building Hardware Industry ................. 61


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List of Tables

Table 1: Investment in Roads, Rail, Civil Aviation, Marine Transport, Power Generation, Water

Supply & Irrigation etc. ........................................................................................................................ 21Table 2: Additional requirement of resources for execution of Planned Infrastructure Construction .. 21Table 3: Employment in Construction Materials and building Hardware - 2008 ................................. 23Table 4: Functional distribution of human resources in the Construction Equipment Segment ........... 27Table 5: Functional distribution of human resources in the Cement Segment ..................................... 28Table 6: Functional distribution of human resources in the Steel Segment (Manufacture of finished

products) ............................................................................................................................................... 28Table 7: Educational qualifications of personnel employed in the Construction Equipment Segment 29Table 8: Educational qualifications of personnel employed in the Steel Segment (Finished Products)

.............................................................................................................................................................. 30Table 9: Skill requirements and skill gaps in the Construction Equipment Segment ........................... 31Table 10: Skill requirements and skill gaps in the Cement Segment .................................................... 39Table 11: Skill requirements and skill gaps in the Steel Segment (Manufacture of finished products) 47Table 12: Projected Size of Construction Materials and Building Hardware Industry ......................... 58Table 13: Projected human resource requirements (in 000s) .............................................................. 58Table 14: Incremental human resource requirement in the Cement sector till 2022 Function-wise (in

000s) .................................................................................................................................................... 59Table 15: Incremental human resource requirement in the Steel sector till 2022 Function-wise (in

000s) .................................................................................................................................................... 59Table 16: Incremental human resource requirement in the Construction Equipment sector till 2022

Function-wise (in 000s) ....................................................................................................................... 60Table 17: Incremental human resource requirement in the Construction Materials and Building

Hardware sector till 2022 Function-wise (in 000s) .......................................................................... 60Table 18: Focus areas for Skill Building .............................................................................................. 62


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1.Environment Scanning and Competitiveness of ConstructionMaterials and Building Hardware sector

1.1.Overview of Construction Materials and Building HardwareConstruction investment accounts for nearly 52.4% of the Gross Fixed Capital Formation.

Investments in construction have a positive domino effect on supplier industries, thereby contributing

immensely to economic development.. Construction materials and equipment sector accounts for

approximately 8.6% of Indias GDP1and accounts for nearly two-third of the total construction

costs on an average. The share of construction materials in project costs ranges from 40-60% and the

corresponding cost for construction equipment ranges from 5 to 25%. Construction component

comprises nearly 60-80% of project cost of infrastructure projects like roads, housing etc. In projectslike power plants, industrial plants, etc. the share, though lower, is critical. Construction materials and

equipment sector comprises of various sub-industries such as:

Cement Steel Construction equipment Paints & Chemicals Petroleum products and resins Fixtures and fittings (including electrical wiring) Aggregates such as concrete and asphalt Timber Tiles and ceramics Aluminium, Glass & Plastics

Since most of the materials are either manufactured locally, in cottage or small scale industry, data

available for quantifying the exact nature of linkages with construction is not very accurate. On the

other hand, linkages of products such as paints and petro-products would again be difficult due to

their stronger linkages with other sectors. Whereas in case of cement and steel, almost 100% of

cement production is consumed in construction and about 40 - 60% of steel production goes into

construction. Thus in this report we will focus on only three major categories of construction material

and equipment industry, i.e. cement, steel, and construction equipment.

1 Planning Commission Working Group report on Construction for the 11th Five Year Plan


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1.2.CementCement is a basic construction material with virtually no substitutes; thus, the growth in the

construction industry has a direct relation with the production and consumption of cement. Currently

India is the world's second largest producer of cement after China with an installed capacity of over

200 million tonnes (MT). The cement industry accounts for approximately 1.2% of gross domestic

product (GDP) and is a significant contributor to the revenue collected by both the central and state

governments through excise and sales taxes.

The structure of the Indian cement industry is highly fragmented, which is a result of the low entry

barriers in the post de-control period and the ready availability of technology. However, cement plants

are capital intensive and require a capital investment of over Rs. 5,000-5,500 per tonne (t) of cement,

which translates into an investment of Rs. 5 billion for a 1 MTPA greenfield plant2. In the last few

years the industry has witnessed a number of mergers & acquisitions as a result the concentration at

the top is increasing. This concentration is mainly on account of the focus of the larger and the more

efficient units to consolidate their operations by restructuring their business and taking over relatively

weaker units.

The relative market share of large players in the cement industry has changed significantly over the

years. Consolidation of capacities has seen UltraTech, Grasim, India Cement and Gujarat Ambuja

(renamed as Ambuja Cements) emerge as the leading players apart from ACC, which has been the

market leader during the last several years. All the players have resorted to a combination of capacity

expansions as well as takeover of existing capacities for growth.

Indias cement production increased to 181.4 MT in 2008-09 compared to 168.32 MT during 2007-

08. The cement production has increased at a CAGR of 8.3% over the last ten years (1999-2009). The

compounded annual growth rate in production has been particularly high during the last five years

(9.2%) reflecting robust demand from the construction sector and high exports. However, the year on

year growth of 7.8% in 2008-09 was lower than 8.1% of 2007-08 and 9.8% of 2006-07. This

slowdown in growth during 2008-09 can be attributed to sharply lower exports to Iraq, and lower

consumption growth in some major marketsUttar Pradesh (UP), West Bengal (WB), Punjab, and

Kerala.

2 IMaCS Research & Analytics estimate


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Figure 1: Cement production in India (in Million Tonnes)

Source: IMaCS Research & Analytics compilation

The domestic cement consumption in India since 1999 is shown in the figure below. The

consumption has increased to 177.8 MT in 2008-09 at CAGR of 8.7% since 1999.

Figure 2: Domestic cement consumption in India (in Million Tonnes)


The increased growth in cement consumption over the last few years has had a positive impact of the

capacity utilisation of cement producers. Capacity utilisation increased from 81% in 2003-04 to 94%

in 2006-07, and to 96% in 2007-08. However, capacity utilisation has declined in 2008-09 because of

significant additions in capacity during the year and a slowdown in demand

8294 94 102

111 118128

142156

168181

0

20

40

60

80

100

120

140

160

180

200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

7788 90

99 108114 123

136149

164178

0

20

40

60

80

100

120

140

160

180

200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

CAGR

8.3%

CAGR

8.7%


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Figure 3: Installed capacity in India (in MT) and Capacity utilisation (%)


Indian cement production can be divided in four major categories:

Ordinary Portland Cement (OPC) comprises 95% clinker with the balance 5% comprisinggypsum and other materials

Portland Pozzolana Cement (PPC) comprises 80% clinker, 15% pozzolona, and 5%gypsum.

Portland Blast Furnace Slag (PBFS) comprises 45% clinker, 50% blast furnace slag, 5%gypsum

Others includes all other special categories such as sulphate resistant, IRST-40, etc.In FY2008, about 25.5% of the cement production during was Ordinary Portland Cement (OPC),

66.1% was Portland Pozzolana Cement (PPC), 8.1% was Portland Blast Furnace Slag Cement

(PBFS), and the remaining 0.4% was other special cements.

105 111121

135 140 144151 157

166 176

205

78% 85% 77% 76%80% 81% 84%

90%94% 96%

88%

0%

20%

40%

60%

80%

100%

120%

0

50

100

150

200

250

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


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Page 9 of 63

Figure 4: Production Share of Different Types of Cement for 2007-08 (in %)


Figure 5: Cement exports (in MT) and Export share in total production (%)

Source: IMaCS Research & Analytics compilation, KSL Cement sector update May09

The Indian cement industry exported around 3.2 MT of cement during 2008-09, accounting for

around 1.8% of total production. As a result of increased overseas demand, cement exports increased

from 4.1 MT in 2004-05 to 6.0 MT during 2005-06. In 2006-07 exports declined marginally to 5.9

MT. However, as a result of higher growth in domestic demand coupled with sharp decline in exports

to Iraq cement exports have declined sharply during 2007-08 and 2008-09 to 3.7 MT and 3.2 MT

respectively.

PPC, 66.1%

OPC, 25.5%

PBFC, 8.1%

Others, 0.4%

3.2 3.4 3.5 3.44.1

6.0 5.9

3.73.2

3.4% 3.3% 3.1%2.9%

3.2%

4.2%

3.8%

2.2%

1.8%

0%

1%

1%

2%

2%

3%

3%

4%

4%

5%

-

1

2

3

4

5

6

7

2001 2002 2003 2004 2005 2006 2007 2008 2009


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In terms of regional concentration, the Southern region accounted for 32% of the total production

during 2007-08. Rajasthan alone accounted for 15.3% of the industrys production. The other States

with production concentration are AP (14.8%), MP (11.7%), TN (10.6%), Gujarat (9.1%),

Maharashtra (7.9%), and Karnataka (6.4%). These seven States together account for 76% of the

industry production in 2007-08.

Figure 6: Region-wise production of Cement 2007-08


Figure 7: End Usage Pattern for Cement


The value chain for the cement industry is provided in the following figure:

North, 22%

East, 14%

South, 32%

West, 17%

Central, 15%

Housing -50%

Infrastructure - 25%

Industrial /Commercial

- 25%

TotalCement

Production-100%


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Figure 8: Value chain for the cement industry

Source: IMaCS analysis; * Ready Mix Concrete

Indias annual per capita cement production of 0.15 tonnes in 2007-08 is significantly below the

world average of 0.4 tonnes and Chinas per capita production of 0.83 tonnes during 2006. Thus there

is significant potential of increase in cement consumption in India. It has also been observed that

cement consumption increases along with the rise in per capita income in developing countries.

Thereafter, once all the major developmental projects are in place and the country has a per capita

income comparable with that of the developed nations, the demand for cement stagnates/declines.

Accordingly, the per capita cement consumption also stagnates/declines.

Accordingly the installed capacity is expected to increase to 241 MT by 2009-103 from 205 MT in

2008-09. India's cement sector is expected to witness strong production and consumption growth of

9% during the medium-term in line with the economic growth because of the strong co-relation with

GDP growth and the increased activity in the construction sector.

3 IMaCS Research & Analytics

Processing

Cement

RMC*

Clinker

Mortar

As halt

Concrete

Cementitious

Materials

(Mineral

Components)

Others

(Sand, Gravel,

Stone, Recycled

Aggregates)

Sourcing Manufacture

Transactional

Channels

Selling

Direct Sales

Traders

Wholesalers

Retailers

End Users

Contractors Masons/ Self

BuildersCivil Engineers

Aggregates

Cement and

Allied

ApplicationsHousing

Commercial/

Industrial

Infrastructure


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1.3.SteelThe Indian steel industry ranks fifth in the world with crude steel production of 55.1 MT in calendar

year 2008 up from 19.3 MT in 1994. The steel production has grown at a CAGR of 7.8% over the

same time frame. The share of India in global crude steel production has increased from 2.7% in 1994

to 4.1% in 2008.

Figure 9: Steel production in India (in MT) and share of world production (%)

Source: World Steel Association, IMaCS analysis

The structure of the Indian steel industry comprises of primary producers, secondary producers and

small scale stand-alone processors, with an estimated installed capacity of 57 MTPA, comprising

primary producers (20.7 MTPA), secondary producers (11.5 MTPA), and others (24.6 MTPA).

During 2007, there were an estimated 970 induction furnaces (IFs) working in the country in the

secondary sector with the maximum located in Punjab (119 units), Uttar Pradesh (107), Maharashtra

(73), Gujarat (62), Orissa (57), and West Bengal (43). There are also an estimated 39 working EAFs

in the secondary sector.

The apparent consumption of finished steel in India has increased from 25.1 MT in 1999-2000 to 54.7

MT in 2008-09 at a CAGR of 9%.

2.7%2.9%

3.2%3.1% 3.0% 3.1%

3.2% 3.2% 3.2%3.3%

3.1%

4.0% 4.0% 3.9%4.1%

0%

1%

1%

2%

2%

3%

3%

4%

4%

5%

0

10

20

30

40

50

60

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

India's Production (MT)

Share of World Production (%)


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Page 13 of 63

Figure 10: Apparent consumption of finished steel in India (in MT)


As shown in the figure above, the high growth in steel consumption during 2005-08 was primarily

because of above-normal growth in capital formation in two end-user segments namely construction

and machinery and equipment.

The construction sector accounted for around 45% of Indias steel consumption during FY2008. Other

major user sectors include machinery manufacturing and engineering (30%), steel units (18%)

comprising CR/GP/GC and tube units, automotive (4%), and consumer durables (2%).

Figure 11: Consumption pattern by end-user industries, 2008-09


0

10

20

30

40

50

60

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Construction,

45%

Machinery &Equipment, 30

%

Steel & TubeUnits, 18%

Automotive,4%

ConsumerDurables, 3

%


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Construction is already the largest single steel-consuming sector, accounting for around 45% of

Indias steel demand. The construction sector and, in particular, project construction (relating to

development of infrastructure) is a crucial demand driver for the steel industry. This is because, not

only does construction expenditure drives demand for long products, such as bars and structurals; but

also boosts demand for flat products via water supply works, sanitation, and irrigation projects.

Project construction also needs transport facilities from the selling depots to the sites, so that the

higher demand for trucks and trailers can also indirectly boost the demand for steel.

Nearly 71% of construction sector consumption is accounted for by long products, primarily bars and

rods (55% of total consumption, but also structurals (13%), plates (12%), and GP/GC sheets (8%). For

the machinery manufacturing and engineering sector, bars and rods account for 40-42% of

consumption, followed by HR coils/skelps/sheets (20%), plates (11%), and structurals (11%). Steel

units primarily consume HR coils/skelps/sheets for further processing into CR products. CR

coils/sheets may be further processed into GP/GC sheets.

It is estimated that the growth in India's steel consumption will primarily be fuelled by demand for

construction projects worth Rs 45-50 trillion4.

The scope for raising the total consumption of steel is huge, given that per capita finished steel

consumption is only 44 kg compared to approximately 180 kg across the world and 320 kg in China.

The National Steel Policy has a target for taking steel production up to 110 MT by 201920.

Nonetheless, with the current rate of ongoing greenfield and brownfield projects, the Ministry of Steel

has projected Indias steel capacity is expected to touch 124.06 MT by 201112. India's steel capacity

is likely to be 293 MT by 2020. An investment worth Rs. 8.8 trillion is likely to go into the steel

sector by 20205.

1.4.Construction EquipmentIndias earthmoving and construction equipment (ECE) industry has enjoyed strong growth over the

last few years as a result of rapid economic development in the country. The organised construction

sector in India (e.g., roads, urban infrastructure) accounts for approximately 55% of the ECE industry;

mining, irrigation and other infrastructure segments (e.g., power, railways) account for the rest. A

massive wave of additional investments is likely in each of these end-use demand segments, which

augurs well for the sustained and strong growth of the ECE industry in India.

4 Credit Suisse Group study on Indian steel sector5 Press Release, Ministry of Steel, Government of India


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As per the study6

conducted by the Confederation of Indian Industry (CII) and the Indian

Earthmoving, Construction Industry Association Ltd. (IECIAL), the ECE industry has the potential to

grow fivefold from US $ 2.3 billion in 2007 to approximately US $12 - 13 billion by 2015, growing at

a CAGR of 24%. The study also estimates that the growth up to US $ 8 billion by 2015 is achievable

through normal industry evolution. However, new sets of proactive initiatives are needed to achieve

the full potential of US $ 12 to US $ 13 billion. The Indian ECE industry is also highly fragmented

with the top 6 of around 200 domestic manufacturers contributing to 60% of output.

Major players in this segment in India are:

JC Bamford Excavators (India) Ltd Bharat Earth Movers Ltd L&T Case, L&T Komatsu Ingersoll-Rand (India) Ltd Tractors India Ltd Godrej and Boyce Manufacturing Company Ltd Telcon Escorts Construction Equipment Ltd Action Construction Equipment Ltd Voltas

The key segments that constitute the ECE industry and their share in the total industry are:

1) Concrete equipment Concrete breaker, Paver finisher, concrete batching plants, concretepumps, concrete mixers, hot mix plants

2) Material Handling equipment Telescopic handlers, crawler cranes, mobile cranes, truckcranes, forklifts, pick and carry cranes, slew cranes, tower cranes, conveyors

3) Material Preparation equipment Crushing plants, Jaw crushers4) Tunnelling and Drilling equipment Rotary/DTH drilling, Hammer Track drills, boring

equipment, demolition equipment

5) Road construction equipment Compaction equipment, vibratory rollers, pavers6) Construction vehicles dumpers, articulated haulers7) Earth Moving equipment backhoe loaders, excavators, loaders, bulldozers, skid steer

loaders, wheeled loaders, motor graders, motor scrappers, dump trucks, wheel dozers,

draglines

6 ECE Vision 2015: Scaling new heights in the Indian Earth Moving and Construction Equipment Industry


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The share of these segments in the total industry is provided below:

Figure 12: Share of the ECE Segments

Source: IBEF

Earthmoving equipments constitute the biggest segment and excavators the largest product line within

the segment. The excavator market is estimated at US $ 1.4 billion. This sub segment has been

growing at a CAGR of 30% driven by the 22-60 tonne excavators. In the Earthmoving equipment

segment, excavators contribute 70% of the market, backhoes account for 6%, loaders to 15% and

other equipment to 9%.

There are three popular methods of procuring equipments as depicted in the figure below. Amongst

the three leasing is the most popular in India. Buying involves huge upfront payments and is thus

unpopular whereas equipment rental business is small in India compared to global standards,

accounting for about 7-8% of the construction equipment industry.

Figure 13: Method of equipment procurement

Earth movingequipment,

57%

Tunelling anddrilling for

mining,5%

Concreteequipment,

12%

Materialpreparation,

7%

Roadconstructionequipment,

6%

Materialhandling,

13%

EquipmentProcurement

Buying

Leasing

Renting


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The recent slwodown in the infratsructure and real estate sectors due to the gobal financial crisis has

directly impacted the construction equipment business. Stalling of projects and lack of project finance

has led to a decline in the demand for the construction equipment. As a result, major equipment

manufaturers are cutting production. The buying and leasing segments have also got impacted. Since

buying involves large upfront payments, new purchases have slumped due to lack of funds.

Equipment sales have gone down by 18 to 25%7. While equipment already leased out has remained

unaffected, the decline in the number of new projects has led to a significant fall in new leasing

contracts.

1.5.Demand Drivers of Construction Materials and Building HardwareIndustry

Government initiatives in the infrastructure sector, coupled with the housing sector boom and urban

development, continue being the main drivers of growth for the Indian construction materials and

building hardware industry.

Revival of individual housing demand Following are some of the primary drivers ofindividual housing demand

Efforts by the government to boost the demand for houses in the below Rs 20-lakhcategory in stimulus packages

Cooling-off of land prices and steel prices Increase in minimum support price (MSP) (wheat's MSP has risen to Rs 1,080 per

quintal in 2008-09 from Rs 750 per quintal in 2006- 07 while the figure for rice in the

corresponding period has jumped to Rs 850 per quintal from Rs 580 per quintal),

Increase in pay for workers under the flagship rural job guarantee scheme Implementation of debt waiver scheme Implementation of the Sixth Pay Commission

Huge infrastructure investment planned for Eleventh Five Year Plan (2007-12) amounting toRs. 20,561 billion is also expected to drive the demand for construction material and building

hardware.

7 Indian Infrastructure, Volume 11, No 6, January 2009


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1.6.Key Success Factors and Risk Factors1.6.1. Cement Industry

1.6.1.1.

Key Success Factors

Continuous technological upgrading and assimilation of latest technology - Presently, 93%of the total capacity in the industry is based on modern and environment-friendly dry process

technology and only 7% of the capacity is based on (old) wet and semi-dry process

technology. There is tremendous scope for waste heat recovery in cement plants.

Wide range of products - India is producing different varieties of cement such as OrdinaryPortland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag

Cement (PBFC), Oil Well Cement, Rapid Hardening Portland Cement, etc. Production ofthese varieties of cement conform to the BIS Specifications. Between April to November

2008, 25% of all cement produced was OPC, 67% was PPC and 8% was PBFC.

1.6.1.2. Key Risk Factors High Transportation Cost is affecting the competitiveness of the cement industry. Freight

accounts for 17% of the production cost. Road is the preferred mode for transportation for

distances less than 250 km. However, industry is heavily dependent on roads for longer

distances too as the railway infrastructure is not adequate.

Cement industry is highly capital intensive industry and nearly 55-60% of the inputs arecontrolled by the government.

There is regional imbalance in the distribution of cement industry. Limestone availability inpockets has led to uneven capacity additions.

Coal availability and quality.


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1.6.2. Steel Industry1.6.2.1. Key Success Factors

Level of integration and captive facilities: Integration and captive resources are the need ofthe hour in steel industry. Wide disparities in costs have emerged between integrated players

with their own raw material sources and those that purchase from outside sources

Product Mix: Higher realisations and margins are associated with Flat products (especiallyCR products). Accordingly, there is an increasing share of value added products in the

product mix of the leading players

Branding: Branding has started playing an important role in the steel business. Not only doesbranding enhance customer acceptance and loyalty, it also allows steel companies to charge a

premium on branded steel. In the construction and general engineering segments, efforts have

been made to innovate and improve product quality, develop premium brands and provide

technical support to enhance the value experience of the customers

Cost Competitiveness: Steel is a commodity business with significant volatility in prices.Also, globally it is a relatively low margin business. Accordingly, it is important for players

to be cost competitive so as to be in a position to withstand all phases of the steel cycle.

Sources of cost competitiveness include: abundant, superior, and low cost access to iron ore,

access to low cost coking coal, operational and process cost control measures, and proximity

to major importing countries in South-East Asia

Location of Steel Plant:For steel projects, proximity to sources of raw materials is a criticalfactor in plant location, since each tonne of steel produced requires around 4 tonnes of raw

material to be transported

Marketing Alliances: Tie-ups with bulk consumers (such as automobile Original EquipmentManufacturers) mitigates demand risk and accordingly ensures product off take and high level

of capacity utilisations.

1.6.2.2. Key Risk Factors Availability of raw materials and other inputs: The iron ore resources in the country are

depleting, compounded by the rapid growth of exports. High grade coking coal needed by the

industry is in short supply leading to hardening of prices globally. Although non-coking coal

reserves in the country are adequate, the production of the raw material is constrained by low

investment.

Price volatility: Price volatility of raw material as well as final output is a major risk affectingsteel industry


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Cooling-off of demand: International demand for steel has taken a hit due to several factorssuch as global meltdown, increasing steel prices, etc.

1.6.1. Construction Equipment1.6.1.1. Key Success Factors

Ability to introduce India specific products that include low-priced multipurpose equipmentto attract new customers and to increase mechanisation in important areas adding features to

products that make suitable for use in India and launching new applications and products for

missing applications

Ability to capture exports opportunities in areas such as engineering and design services thatleverage the India's technical prowess

Quality, delivery and pricing of after-sales service Ability to provide end-to-end services including equipment selection, financing, maintenance,

training and repairs

Introduction of newer services such as rentals and financings to catalyse latent demandparticularly from rural areas and small towns

Strengthening of dealer and channel network to address buyer fragmentation following thetrend of sub-contracting and geographic expansion of demand

1.6.1.2. Key Risk Factors Competition from low-cost producers: The success of products from other low cost producers

in a number of other sectors in India and the success of imported Chinese wheeled loaders in

the domestic market (market share of 12% already) indicate the risk of possible share loss for

uncompetitive domestic manufacturers

Tax burden and anomalies: India has one of the highest indirect taxes on constructionequipment

Dependence on import for certain critical components Volatility of steel prices impacting production costs


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1.7.Outlook for Construction Materials and Building Hardware IndustryThe Planning Commission Report of the Working Group on Construction for the 11 th Five

Year Plan (2007-12) lists the following identified planned expenditure and the effect on the

various sub-segments of the construction materials and building hardware industry.

Table 1: Investment in Roads, Rail, Civil Aviation, Marine Transport, Power Generation, Water

Supply & Irrigation etc.8

S. No. Category Amount (Rs. crore)

1 Private investment in Roads 34,000

2 Express way development (Modernisation /

Upgrading of Highways) 220,000

3 Railways (Public) 180,000

4 Railways (Private) 120,000

5 Civil Aviation 40,000

6 Ports (Private) 50,000

7 Freight Corridor 22,000

8 Power Generation 420,000

9 JNNURM 60,000

10 Housing 150,000

11 Others 160,000

12 Total 14,56,000

Source: Planning Commission Working Group Report on Construction for the 11th Five Year Plan

A gross estimate of the requirements of resources based on the above investment requirement is

presented below:

Table 2: Additional requirement of resources for execution of Planned Infrastructure Construction

S. No. Category Details1 Total Investment Rs. 14,56,000 crore

2 Moderating Factor (weighted average for

the construction industry) 62%

3 Effective additional investment in

construction Rs. 900,000 Cr

4 Monetary requirements :-

8 This is only partial list and does not account for other sectoral work specially from Private Sector (Industry andothers)


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S. No. Category Details

4.a Construction material Rs. 495,000 Cr

4.b Construction equipment Rs. 180,000 Cr

4.c Manpower Rs. 108,000 Cr

5 Detailed requirements:-

5.a Materials (major)

5.a.(i) Cement 381 million tonnes

5.a.(ii) Steel 150 million tonnes

5.b Manpower 92 million man years

5.b.(i) Engineers 3.72 million man years

5.b.(ii) Technicians 4.32 million man years

5.b.(iii) Support staff 3.65 million man years5.b.(iv) Skilled workers 23.35 million man years

5.b.(v) Unskilled/semiskilled workers 56.96 million man years

Source: Planning Commission Working Group Report on Construction for the 11th Five Year Plan

These resources would be required under the 11th Five Year Plan for the above mentioned

investments. It is, therefore essential, that necessary measures be taken to prepare the industry to meet

this challenge.


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2.Human Resource and Skill Requirements in the ConstructionMaterials and Building Hardware Sector

2.1. Current Employment in the Construction Materials and BuildingHardware Sector in India

As described earlier, the three major constituents of the Construction Materials and Building

Hardware Sector are the segments of cement, steel and construction equipment. Of these, the steel

segment employs the maximum proportion of people, followed by the cement segment and then the

construction equipment segment.

The total employment across these three sectors is as follows:

Table 3: Employment in Construction Materials and building Hardware - 2008

Sector Employment (in million) % of Total

Cement 0.14 12%

Steel 0.50 44%

Construction Equipment 0.50 44%

Total 1.14 100%

Source: Cement Manufacturers Association of India, ASI, IMaCS analysis

Note:

While the steel sector employment above indicates the employment across all constituents of the steel

value chain, we are concerned with the manufacture of finished products such as plates, bars and rods

that are ultimately used in construction activities. Thus the sections below will focus on employment

in the manufacturing / processing of finished products and not on the manufacture of liquid steel.

Thus, the part of the value chain covered by us in the Steel Segment is as shown in the following

figure:


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Figure 14: Coverage in the Steel Segment

2.2. Major Regions of Employment ConcentrationThe zone-wise and State-wise distribution of personnel employed in the Cement and the Steel

segments is analysed below.

As regards the Cement Segment, it is seen that production (and thus the employment) is concentratedin the West and the South zone; these zones together account for about 65% of the total cement

production of the country, and would thus employ personnel in the same proportion. The zone-wise

distribution9 is as follows:

9 The zones are defined as:North: Jammu & Kashmir, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh, Uttarakhand, DelhiSouth: Tamil Nadu, Andhra Pradesh, Kerala, KarnatakaEast: Bihar, Jharkhand, Orissa, West Bengal, SikkimWest: Maharashtra, Gujarat, Goa, RajasthanCentral: Madhya Pradesh, Chhattisgarh

North East: Assam, Mizoram, Manipur, Meghalaya, Tripura, Arunachal Pradesh, Nagaland

MiningRaw

MaterialProcessing

Manufactureof Iron

Manufactureof Liquid

Steel

Casting formanufacture

of semi-finished

products(billets, bloo

ms, etc.)

Hot rollingfor

manufactureof finishedproducts

(flat / roundsteel

products)

Cold rollingfor products

such ascoated /paintedsheets /

coils/ strips


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Human

As rega

Rajasth

total ce

follows:

esource and

Figure 15

ds the distri

n, Andhra

ent produc

Figure 16

Ce1

K

Chh

Himac

Skill Require

Zone-wise

Source:

ution of pe

radesh, Ma

ion of the c

State-wise

Source:

tral%

Nort10

Maharashtra7.9%

arnataka6.4%

attisgarh5.9%

hal Pradesh3.6%

ents in the

distribution

IMaCS Rese

sonnel emp

hya Prades

untry, and t

distribution

IMaCS Rese

East7%

Gujarat9.1%

Others14.6%

onstruction

of personn

rch and Ana

loyed in the

and Tamil

us the emp

of personn

rch and Ana

Sou32

North1

Ta1

aterials and

l employed

ytics, IMaCS

Cement Seg

adu, toget

oyment. Th

l employed

ytics, IMaCS

th

East

Rajasth15.3

il Nadu0.6%

Building Har

n the Ceme

analysis

ment across

er account f

State-wise

n the Ceme

analysis

West32%

an

Andhra14.

Madhya Pra11.7%

dware Sector

Page

nt Segment

states, it is s

or over 50%

distribution

t Segment

Pradesh.8%

esh

25 of 63

een that

of the

is as


28/66

Human

In the S

personn

As rega

Jharkha

employ

esource and

teel Segmen

el engaged i

Figure 1

rds the distr

d, West B

ent in the s

Figure 1

Ta

U

Skill Require

t, it is seen

the segme

7: Zone-wis

ibution of p

engal, Cha

egment. Th

8: State-wis

South

20.5%

North14.7%

Andhra Prad8.6%

Punjab4.8%

Gujarat4.5%

il Nadu.5%

arnataka3.4%

tar Pradesh2.8%

Maharasht2.3%

H2

ents in the

hat the East

t. The zone

distributio

Source: ASI

ersonnel em

tisgarh, an

State-wise

distributio

West11.5%

esh

ra

ryana.3%

Madhya Pr2.3%

onstruction

zone alone

wise distrib

of person

4-05 data, I

ployed in th

Orissa to

istribution

of person

No

Orissa11.4%

adesh

Others8.5%

aterials and

accounts for

tion is as f

el employe

aCS analysi

e Steel Seg

gether acco

s as follows

el employe

rth East0.8%

Jhar17.

C

Building Har

over 50%

llows:

in the Stee

ent across

nt for ov

:

in the Stee

E52

hand%

West

14.

attisgarh13.3%

dware Sector

Page

f the total n

Segment

states, it is

r 55% of

Segment

ast.5%

engal

%

26 of 63

mber of

seen that

the total


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Page 27 of 63

2.3. Functional Distribution of Human Resources in the ConstructionMaterials and Building Hardware Sector

During our interaction with the industry as part of our Primary Research, we analysed the proportion

of workforce at various functional levels across the Construction Materials and Building Hardware

Sector. The inputs received from the industry, supplemented by analysis by IMaCS, are as presented

in the following sections.

2.3.1. Functional Distribution of Human Resources in the ConstructionEquipment Segment

As in other manufacturing companies, construction equipment companies engage most

personnel in the manufacturing / operations function, followed by personnel in the customer support

function.

The details are covered in the following table:

Table 4: Functional distribution of human resources in the Construction Equipment Segment

Function Distribution

Manufacturing / Operations 60-65%

Sales / Marketing 8-10%

Customer Support 10-15%

Research and Development 1-2%

Support functions (HR, Finance, etc.) 10-12%

Source: Primary Research and IMaCS analysis

2.3.2. Functional Distribution of Human Resources in the Cement SegmentMost personnel in the cement industry are engaged in the manufacturing / operations function,

followed by personnel in the mining and the R&D functions to an equal extent.



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Table 5: Functional distribution of human resources in the Cement Segment


Manufacturing / Operations10 60-70%

Mining 12-15%

Marketing / Sales 10-12%

Research and Development 2-3%



2.3.3. Functional Distribution of Human Resources in the Steel Segment(Manufacturing of finished products)

As indicated earlier, our focus for the Steel Segment is on the personnel employed in the casting and

hot rolling operations. Thus, the distribution of personnel engaged in these core operations of casting

and hot rolling (on the shop-floor) as well as the proportion of personnel engaged in the sales /

marketing of finished products is as below. Others in the table below includes personnel engaged in

all other operations at steel units, such as mining, raw material processing, iron manufacturing, liquidsteel manufacturing and cold rolling, across all functions (i.e. manufacturing, procurement, R&D,

support functions, etc.).

The details of functional distribution are as below:

Table 6: Functional distribution of human resources in the Steel Segment (Manufacture of

finished products)


Production, QA, R&D11 40-45%

Technical Services / IndustrialEngineering

25-30%

Purchase, Logistics, Stores 10-12%



10 Includes personnel in cement plant construction as well as cement manufacturing11 Minimal number of R&D personnel


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2.4. Distribution of Human Resources by Education Levels in theConstruction Materials and Building Hardware Sector

As a part of our Primary Research, we also analysed the education-wise composition of personnel

employed in the Construction Materials and Building Hardware sector. The inputs received from the

industry, supplemented by analysis by IMaCS, are as presented in the following sections.

2.4.1. Distribution of human resources by education levels in the ConstructionEquipment Segment

Majority of the personnel employed in the Construction Equipment Segment have an engineering

background and are graduate engineers, diploma engineers or ITI-qualified. Personnel in the

manufacturing / operations function primarily need to have this background; also, personnel in thissector who are employed in the sales / marketing / customer support functions also need to technically

know and understand the product and thus need to have an engineering background.

The details are covered in the following table. This includes Operators of Construction Equipment,

apart from those engaged in shop-floor of Equipment Manufacturing.

Table 7: Educational qualifications of personnel employed in the Construction Equipment

Segment


Ph. D / CA / MBA /MTech etc.

5-8%

Graduate Engineers 8-12%

Diploma Engineers 10-15%

ITI and other vocationalcourses

10-15%

Graduates

(BA/BSc/BCom/others) 5-8%

Workers/Operators (withqualification of 12thstandard and below) this includes Operators ofEquipment

40%-50%



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2.4.2. Distribution of human resources by education levels in the Steel Segment(Finished Products)

Majority of the personnel employed in the casting and hot rolling operations have an engineering

background and are graduate engineers, diploma engineers or ITIs. The segment also employs a

considerable proportion of personnel who have studied till 12th

or below, and these primarily

constitute the unskilled workforce in manufacturing.


Table 8: Educational qualifications of personnel employed in the Steel Segment (Finished

Products)


Ph. D / M Tech 1%

CA/MBA 1%

Graduate Engineers 10%-11%

Diploma Engineers 15%

ITI and other vocationalcourses

15%

Graduates

(BA/BSc/BCom/others)

3%-5%

Workers (12th standardand below)

50%-55%



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2.5. Skill Requirements and Skill Gaps in the Construction EquipmentSegment

2.5.1. Profile of people employedThe following figures illustrate the profile of people employed in the Construction Equipment

Segment across various categories.

Figure 19: Profile of people employed in the Construction Equipment Segment


2.5.2. Skill requirements and skill gapsThe following table presents the skill requirements and gaps across various functions and

hierarchical/reporting levels in the Construction Equipment Segment. The skills required as well as

the current skill gaps as similar to those in manufacturing setups in other industries such as the

automotive industry.

Table 9: Skill requirements and skill gaps in the Construction Equipment Segment

Function /

RoleLevel Skills required Skill gaps

Manufacturing

/ Operations

Shop in-

charge

Ability to keep abreast of thetrends in the real estate and

infrastructure construction space

Inadequate ability to keepcomplete track of changes

/ trends in the real estate /

ITI's / below 12th with /without experience; some

diploma engineers

Diploma engineers with3-4 years experience;

some graduate engineers

Graduate engineers / PostGraduate (PG) with 7 to 8

years experience; somediploma engineers with 10

to 12 years experience

Manager

Supervisor

Workmen Workmen

Supervisor

Workmen


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Function /


that will correspondingly influence

the need for constructionequipment in India

Ability to keep abreast of globaltrends in the construction

equipment space for example, the

move towards integrated

construction equipment, ergonomic

construction equipment, etc.

Ability to ensure reliability ofconstruction equipment

manufactured

Ability to coordinate withcounterparts abroad, emulate

manufacturing best practices, and

help adapt the products

manufactured abroad to Indian

specifications

Ability to clearly communicatewith and ensure coordination

between various functions, such as

R&D, Sales, etc.

Ability to ensure high quality atminimum costs

Ability to understand variedcustomer needs and manufacture

products to suit these needs

accordingly

Ability to ensure a system-drivenapproach to manufacturing as

against a makeshift approach and

ensure that quality systems are in

place

infrastructure construction

space in IndiaInadequate ability to

liaison with the various

functions

Inadequate knowledgeacross all facets of the

companys business and

the financial/commercial

impact of their decisions

on the companys

business


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Function /


Supervisor Ability to understand the varioussegments / product types within theconstruction equipment segment

(e.g. earth moving equipment,

material preparation equipment,

tunnelling & drilling equipment,

road construction equipment, etc.)

and guide workmen on product

lines accordingly

Ability to understand how theconstruction equipment will be

used on the field

Ability to support the manufactureof construction equipment by

performing manufacturing

engineering, process improvement,

production planning, purchasing,

and other technical functions

which are necessary for the team to

meet its customer needs

Ability to coordinate with suppliersfor outsourced components

Ability to be abreast of latestmanufacturing techniques and

quality tools such as six sigma,

kaizen, quality circles, JIT, TQM,

TPM etc. and actively participate

in the implementation of the same

on the shop-floor

Ability to allocate suitable work toworkmen based on their skill levels

Ability to ensure pre-emptivemaintenance and troubleshooting

Inadequate ability tomanufacture productskeeping the customer

requirements / end usage

requirements in mind

Inadequate interpersonalskills, leading to

inadequate ability to

resolve conflicts that may

arise between workmen

Inadequate understandingof quality concepts such

as Six Sigma, JIT, TQM,

Kaizen, 5-S


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Function /


initiatives on the shop-floor to

minimise shop downtimeUnderstanding of latest production

techniques such as lean

manufacturing

Ability to ensure that dailyproduction line targets are met

Ability to manage the availableresources workmen, raw

materials, consumables, etc.

Ability to ensure productivity byemploying efficient processes and

maintaining coordination on line

Workman /

Operator

Knowledge, consciousness and theability to apply safety measures on

the shop-floor

Ability to carry out basic troubleshooting / autonomous

maintenance of machines in case

of breakdown

Ability to understand qualityconcepts and techniques being

followed by the company

Ability to maintain discipline at theshop floor, punctuality and regular

attendance at the workplace

Ability to work on more than oneproduction process

Ability to highlight aberrations indaily production processes

Basic literacy, analytical abilityand the ability to understand and

follow shop floor instructions

Insufficient understandingof discipline, industrial

rules, work related

procedures

Inadequate ability to carryout basic trouble shooting

of production machines in

case of breakdown

Inadequate understandingof the end-use of the

customer

Inadequate orientationtowards quality

production

Inadequate understandingof how the work being

done fits into the big

picture

Tendency to form unionsand disrupt regular


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Function /


Ability to minimise wastage of rawmaterials and consumables,maximise production and

understand the corresponding

impact on cost, quality and time

Ability to adhere to requiredquality levels of production

Ability to understand and followinstructions from supervisors, shop

heads, plant head etc.

Ability to read and understandengineering drawings

Ability to conform to workschedules and complete the

assigned work on time

working

Sales /

Marketing

Senior

Sales

Executive

Ability to ensure availability ofequipment at the point of sales /

point of distribution for equipment

that is being imported and sold in

the Indian market

Ability to order machines in timefrom foreign counterparts based on

the delivery schedule to customers

in India and ensure delivery of the

ordered machines to customers

through dealers or directly

Ability to manage key accounts,such as corporate accounts,

Government accounts, etc.

Ability to drive rental/leasingagreements with customers

Ability to handle remarketing /refurbished equipment sales

Inadequate ability toliaison with counterparts

abroad and order

machines in time so as to

ensure availability of

equipment at the

customers end as per the

sales plan

Inadequate understandingof the Indian real estate /

infrastructure segments

that drive the need for

construction equipment


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Function /


Ability to interact with dealers andresolve issues faced by them, ifany

Ability to drive sales in the areaand meet sales targets

Ability to coordinate training ofcustomers personnel on how to use

the construction equipment

Ability to coordinate withfinancing companies and facilitate

financing of the construction

equipment for the client

Ability to provide direction andleadership to junior sales

executives

Junior

Sales

Executive

Knowledge of the working ofvarious categories of construction

equipment being traded /

manufactured by the company

Ability to train contractors /developers, etc. for usage of the

construction equipment

Ability to regularly interact withdealers and highlight issues faced,

if any

Ability to understand overallcustomer requirements and how

these are being addressed by

product specifications

Ability to evaluate competitors andprovide competitive differentiation

i.e. the ability to compare own

products with competitors products

Inadequate ability to trackcompetitions moves

Tendency to try and sellindividual products and

not solutions to address

multiple needs

Inadequate ability to dealwith Government

procedures


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Function /


and prove own products to be

superior and appropriate to theneeds of the contractor / developer

Good verbal and non-verbalcommunication skills to be able to

effectively communicate with

diverse agencies


2.5.3. Skills required in the ecosystem of Construction Equipment IndustryThe above table illustrated the skills required in the Construction Equipment Industry from an

equipment manufacturing perspective. Apart from the above, the following skills are in demand from

the perspective of the ecosystem in which the Construction Equipment Industry operates, primarily

driven by the Construction Industry:

Construction Equipment Operators users of Construction Equipment Construction Equipment Maintenance at on-site, servicing repairs and machinery After-sales support among dealers and suppliers.

Given the nature of operations, it is also required to build skills in the areas of Occupational Health

and Safety standards.

It is expected that the following skilled personnel will be in demand:

Crane operators Mobile crane operators

High-rise crane operators Hoist operators Dumper operators Fork lift truck operators Aerial Ropeway operators.

It should be noted that the above skill sets are over and above that of shop floor/equipment

manufacturing, and these skills are required to train users of Construction Equipment in

operation and maintenance.


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2.6. Skill Requirements and Skill Gaps in the Cement Segment2.6.1. Profile of people employed

The following figures illustrate the profile of people employed in the Cement Segment across variouscategories.

Figure 20: Profile of people employed in the Cement Segment



hierarchical/reporting levels in the Cement Segment.

ITIs / below 12th / with /without experience

Diploma engineers with 3-4yrs experience; PG orgraduates in in

geology, geochemistry,

industrial etc with 4-5 yrsexperience

Grad engg / PG's with 7-8yrs experience / diploma

engg with 10-12 yrsexperience / PG in

geology, geochemistry,

industrial etc with 7-8 yrsexperience

Manager

Supervisor

Workmen Workmen

Supervisor

Workmen


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Table 10: Skill requirements and skill gaps in the Cement Segment

Function /


Mining Mines

manager /

Mine

Planning /

Mine

Development

Ability to lead the initiativesfor acquiring limestone blocks

e.g. preparation of necessary

applications, following up with

the relevant authorities,

obtaining all clearances and

permissions as may be

required, etc.

Ability to undertakeexploration and prepare

feasibility reports based on the

field study and confirmations

obtained by various methods

Ability to supply adequatequantity and appropriate

quality of limestone to the

plant within the budgeted cost

Ability to liaison withdepartments such as R&D and

production and all relevant

Government departments,

whenever required

Ability to be highly consciousof environment / safety norms

and requirements and enforce

the same

Ability to provide usefulfeedback on the performance

of construction equipment

procured for mining operations

Ability to allocate requiredpersonnel and machines such

Inadequate ability to liaisonand deal with Governmental

agencies

Inadequate ability to followup the status of applications

submitted

Inadequate ability tocoordinate / assign work to

junior mining engineers

Inadequate ability to liaisonwith the manufacturing /

operations department


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Function /


as excavators, dumpers, pay

loaders, dozers, drills, rockbreakers, etc. in different

locations of mines

Ability to maintain allstatutory records as per mines

rules

Ability to allocate work tojunior mining engineers

Ability to undertake overallsupervision of the safety of

workmen, machines etc

Knowledge of the corporatemining lease process

Ability to plan drilling andblasting rounds to obtain

optimum blasts

Supervisor Ability to undertakeexploration in allocated blocks

Detailed knowledge of variousdrilling & blasting methods

Ability to understand minecharacteristic and mining

impact on the environment

Ability to be knowledgeableabout the latest mining

technology and machines

e.g. latest blasting techniques,

use of microprocessors for

fault detection, etc.

Ability to monitor groundvibrations due to blasting

Ability to understand

Inadequate ability tointerpret geological data

Statutory requirements statethe need for technically

qualified personnel to be

employed in this role but

such technically qualified

personnel do not have

adequate domain

knowledge or hands-on

experience in supervising

mine operations

Inadequate knowledge oflatest technological

innovations in India /

abroad


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Function /


reclamation and rehabilitation

with respect to miningAbility to undertake

maintenance and planning of

material handling equipment

Inadequate ability to ensurediscipline and thus theimplementation of safety

norms at mines especially

for underground mines

Workman /

Operator

Ability to operate miningequipment Conventional

Mining Equipment/Specialised

Mining Equipment/Bucket

Wheel Excavators and ensure

highest levels of efficiency and

productivity of mining

equipment

Ability to follow safetyinstructions this is especially

critical for underground mines

which need higher safety to be

followed as compared to open

mines

Ability to be sensitive toenvironmental parameters such

as impact on the forest,

deforestation that may happen,

afforestation that is needed,

impact on the water level,

waste management, topsoil

management, reject handling,

dust control, etc.

Inadequate knowledge ofoperating mining

equipment, leading to

higher downtimes of such

highly expensive equipment

and thus lower returns on

investment on the

equipment

Inadequate sensitivity toenvironmental impacts of

mining

Ability to understand andrigorously follow safety

norms at mines

Manufacturing

/ Operations

Shop / plant

in-charge

Ability to identify use ofalternate materials / industrial

wastes / by-products in cement

manufacture

Ability to facilitate smooth

Inadequate ability to leadnew plant erection

initiatives / expansion

initiatives, leading to delays

in new plant erections


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Function /


erection of new cement plants

as required and lead cementproduction initiatives

Ability to undertake erection /commissioning of equipment

in the plant and also handle

expansion related work

Ability to ensure availabilityand reliability of the plant to

meet production and cost

targets without compromising

on the health of capital

equipment employed

Ability to review the cementplants process water / run-off

plans and ensure compliance to

environmental requirements

Ability to select alternate fuelsand feed stocks

Ability to maintain properinventory records and ensure

optimum inventory levels in

the plant

Ability to work as a technicalfacilitator for vendors

Ability to convert theproduction plan into monthly-

weekly-daily production

schedule

Knowledge of commercialaspects of cement business

including obtaining required

raw materials

Inadequate ability to keeptrack of international trendsin the cement industry so as

to adopt best practices

Inadequate ability tocoordinate between

departments / functions


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Function /


Proficiency in projectplanning, procurement,erection, commissioning of

plants, obtaining all clearances

and permissions, as may be

required

Supervisor Ability to work with increasinglevel of automation in the

cement manufacturing process

for example automated

sampling techniques, control

of manufacturing processes,

loading, unloading, spillages

from control rooms, etc.

Ability to identify and initiatevarious energy conservation

measures

Ability to oversee operation ofcontrols in the control room so

as to ensure the required

production

Ability to organize regularcalibration of all process

instruments and lab

instruments

Ability to maintain sensors,transducers, control panels and

keep them in operating

condition at all times

Ability to ensure proper andsafe storage of materials

Ability to work with cementprocesses, grinding and pyro

Inadequate ability tomanage workmen and

maintain discipline

Inadequate technicalknowledge, such as

knowledge of kiln

operations

Inadequate ability toundertake and ensure

preventive maintenance

Inadequate openness toworking with new

technologies


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Function /


processing, kiln and mills

operation, process optimizationand refractory management

Ability to maintain variouselements of cement plants,

such as rotary kilns, mills,

pneumatic / hydraulic systems

etc.

Workman /

Operator

Knowledge of the chemicalprocesses in cement

manufacture

Ability to understand differentclinker production processes

Ability to operate controls inthe control room without error

and ensure the required

production

Knowledge of modern quality /process improvement practices

including working and

implementation knowledge of

TPM, Quality Circle, Kaizen

Activities etc.

Ability to handle all basicfunction of quality control

Ability to handle PLC systemsKnowledge of cement packing

processes and use of packing

machinery

Ability to undertake operationand maintenance of pollution

control equipment

Inadequate ability tounderstand the

technicalities of work being

done

Inadequate knowledge ofquality tools / latest

manufacturing techniques

Inadequate orientationtowards safety /

environmental protection

Inadequate ability topractice safety measures

when using equipment

Research and Senior design Ability to identify multiple Inadequate ability to


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Function /


Development engineer means for energy conservation

and thus reducing energy costsAbility to bring about

innovations in production

methods so as to optimise

production costs

Ability to decide theproportions of limestone,

gypsum, flyash, etc. to be used

in the production process

based on the quality of the

input materials, so as to attain

the same quality of end

product

Ability to plan designing of themines by using latest software

packages

Ability to undertake technicaland market evaluations in

consultation with sales /

marketing personnel, to

determine the suitability of

resource recovery

opportunities available to the

cement plant

Ability to identify recyclingopportunities

Ability to undertake long termmine planning and designing

Ability to evaluate variousfuels for cement kilns

Ability to determine rawmaterials specifications and

identify diverse energy

conservation means andthus help reduce energy

costs

Inadequate ability tooptimize production

processes so as to optimize

costs


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Function /


blending ratios

Junior design

engineer

Ability to understand impacton worker health and safety,

environment and conformance

to regulatory requirements

Ability to maintain lab / fieldtest reports, statistical records

and documentation of the

testing process

Ability to analyze metalemission data from cement

kilns and incinerators burning

hazardous waste

Ability to performcomprehensive laboratory tests

and field sampling, of cement

kiln dust and cement clinkerstored and generated at the

cement plant(s)

Inadequate orientationtowards safety and

environmental parameters

Inadequate ability tomaintain records



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2.7. Skill Requirements and Skill Gaps in the Steel Segment2.7.1. Profile of people employed

The following figures illustrate the profile of people employed in the Steel Segment across variouscategories.

Figure 21: Profile of people employed in the Steel Segment (Manufacture of finished products)



hierarchical/reporting levels in the Steel Segment.

Table 11: Skill requirements and skill gaps in the Steel Segment (Manufacture of finished

products)

Function /


Production,

QA, R&D

Section in-

charge

Ability to undertake manufactureof bars, pipes, wire and wire

products from billets, building

beams and columns from

blooms, and flat-rolled products

such as sheets, strip and plates

Inadequate ability to ensuremaximum mill availability /

uptime

Inadequate ability tocoordinate between

supervisors / shift-in-charges

ITIs / below 12th with /without experience

Diploma engineers with 3-4 yrs experience; Some

ITI-trained personnel withexperience

Grad engg / PGs with 7-8yrs experience / diploma

engg with 10-12 yrsexperience + metallurgy

background

Manager

Supervisor

Workmen Workmen

Supervisor

Workmen


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Function /


from slabs

Ability to oversee the completemanagement of the rolling mills

Detailed knowledge of themetallurgical properties of steel

as well as the transformations the

steel goes through during the hot

rolling process

Detailed knowledge of therolling process and the ability to

guide supervisors and workmen

on technical parameters

Ability to be actively involved insourcing of equipment when

required

Ability to undertake craneoperations from loading /

unloading / transfer of finished

goods, etc.

Ability to ensure maximum millavailability / uptime

Ability to ensure that the shape,chemical and mechanical

properties of the final product are

as per client specifications

Inadequate ability tocoordinate between multipleagencies such as logistics

personnel, logistics providers,

technical services, etc.

Supervisor /

shift-in-

charge

Ability to operate controls andmonitor output screens linked to

the production equipment so as

to ensure that production is being

done as per the required

parameters e.g. the ability to

ensure that the % reduction per

pass does not exceed the

Inadequate ability totroubleshoot and ensure

machine up-time

Inadequate ability tocoordinate among diverse

agencies

Inadequate ability to monitor/ use controls / guide


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Function /


prescribed limits is critical to

ensuring optimal load on themachine

Ability to ensure properconveyor operation for moving

WIP products between stations,

moving finished products, etc.

Ability to conduct in-processinspection to check if parameters

such as surface specifications, rib

quality, section weight, diameter

etc. are as per final requirements

Ability to assist in conductingtensile tests, bend tests to ensure

that production processes are

working as per requirement

Ability to ensure exactlyreproducible product quality on

the production line

Ability to plan and implementpreventive maintenance

schedules for machines so as to

reduce machine downtime

Ability to troubleshoot andensure maximum machine up-

time in the case of a breakdown

Ability to manage and scheduledaily and weekly production

Ability to enforce key safetymeasures on the shop-floor and

ensure an accident-free

environment, especially given

the high temperature

workmen for the same

Availability of personnel witha metallurgy educational

background is a concern


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Function /


environment / products being

worked onAbility to undertake mechanical

testing of raw materials and

finished products

Workman /

Operator

Ability to monitor machineparameters and use the required

controls

Ability to cut small samples fromthe final bar / rod for testing /

QA

Ability to operate cranes / hoi

construction matl bldg hardware

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