ffsc newsletter

The Craft of Design

A quarterly journal from the Furniture & Fittings Skill Council August 2016, Vol. 1, No. 1

A FURNITURE & FITTINGS SKILL COUNCIL INITIATIVE 2

MINISTER’S VISION FOR THE INDUSTRYSHRI RAJIV PRATAP RUDY, HON. UNION MINISTER OF STATE FOR SKILL DEVELOPMENT AND ENTREPRENEURSHIP (INDEPENDENT CHARGE), GOVERNMENT OF INDIA

Skill development is central to India’s quest to reap the demographic dividends. Unfortunately, only about 4% of our 1.2 billion people are formally skilled, as opposed to countries like the UK, Japan and Korea where 62%, 75% and 92% of their respective populations are skilled in different vocations. Bridging the skill divide is of utmost importance to the Indian economy, more so as our country gears up to enter a phase of accelerated industrial growth that will spur greater demand for skilled workers.

The high decibel Skill India campaign that was launched by our Government in July 2015 is predicated to the National Skill Mission goal of skilling 40.2 crore people by the end of 2022. In this, the Sector Skill Councils formed under the National Skill Development Corporation (NSDC) have key roles in meeting the specific skill demands of the industries to which they are aligned.

Sector Skill Councils by their very nature are industry-oriented and function in the true public-private partnership (PPP) mode. The Councils are empowered to create occupational standards and qualification bodies, develop competency framework, conduct train the trainer programmes, undertake skill gap studies and assess and certify trainees on the curriculum aligned to National Occupational Standards developed by them.

Against this backdrop, the Furniture & Fittings Skill Council has taken upon itself the onerous task of building a large, reliable skill base for the enterprising furniture and fittings industry that is growing at an impressive rate in keeping with the expansion of corporate, commercial and household sectors. According to an NSDC report, India’s furniture and furnishings industry will need some 11.3 million skilled workers by the year

2022. The Furniture & Fittings Skill Council has therefore unfurled a raft of training programmes and schemes toward meeting this target without diluting the expected quality standards.

The Council is not only equipping the workers with modern skills including use of more sophisticated tools, but equal emphasis is also laid on the preservation and promotion of traditional skills, especially when it comes to carpentry. This is one industry where art and aesthetics are supremely important and so the skills imparted to the workers have to be a right mix of traditional craftsmanship and modern designs, tools and techniques.

On a higher plane, the success of various initiatives launched by the Furniture & Fittings Skill Council would depend on robust information dissemination and knowledge sharing. The ‘The F&F Skills Network’ magazine, which makes its debut with this edition, is designed to promote a dialogue between all key stakeholders of the furniture and fittings industry on the different facets of skill development of this industry.

This publication is also a positive step toward building a favourable eco-system for entrepreneurship development in the furniture and fittings industry through education and training, advocacy, easy access to various components of entrepreneurship ecosystem including mentor network, credit, incubator & accelerator, information platform, research, etc.

I urge every one of you to contribute to this publication and enhance the robustness of information and knowledge exchange within the furniture and fittings industry.

A FURNITURE & FITTINGS SKILL COUNCIL INITIATIVE3

The Indian furniture & fittings industry is maintaining a healthy 15% annual growth fuelled by growing demand from the residential sector in particular and the corporate and commercial sectors as well. The growing market opportunity has encouraged a greater number of furniture brands to enter the fray thereby enhancing the market share of organised players. Taking cognizance of the consumer preference for high-end, low maintenance, quickly installable furniture, the organised players are assiduously increasing their presence across regional markets, while simultaneously stepping up their production levels. The emerging situation has spawned a huge demand for skilled workers who are trained in modern furniture manufacturing processes.

The 68th Round of NSSO employment data indicates that 50% of the furniture manufacturing workforce is concentrated in five states – West Bengal, Uttar Pradesh, Maharashtra, Bihar, and Gujarat. To meet the growing demand for skilled workforce in the furniture & fittings industry, it is imperative to strengthen the workforce in these five states as well as encourage a larger number of young people in other states to undergo skills training in furniture manufacturing.

As such, young skilled people were generally disinclined to pursue employment opportunities in furniture manufacturing industry owing to the relatively low wage levels. But, now with the entry of big global and Indian companies and brands in this space, wage levels are also moving up, which should induce more people to seek skill training in furniture & fittings manufacturing processes in order to bag more attractive employment opportunities.

At the Furniture & Fittings Skill Council, multi-

pronged efforts are underway to build a large skilled workforce for the industry and to create an enabling employment environment for all the workers who have equipped themselves with the requisite skill-sets.

Further, to create a scientific and industry-oriented skill development system, the Skill Council has created National Operating Standards (NOS) for five identified trades in the furniture & fittings sector, providing training & certification to the workforce/potential workforce and also to the trainers, determining skills/competency standards and qualifications, standardising affiliations and accreditation process etc.

At this juncture it is important for the Furniture & Fittings Skill Council to deepen our stakeholder engagements. We therefore hit upon the idea of launching this bi-monthly journal ‘The F&F Skills Network’ to promote cross-flow of ideas linked with skill development in the furniture & fittings industry.

I look forward to your deep association with this publication – as a commentator, contributor and reader.

Happy reading!

CHAIRMAN’S VIEWPOINTANIL MATHUR, CHAIRMAN, FURNITURE AND FITTINGS SKILL COUNCIL AND COO, GODREJ INTERIO


CO-CHAIRMAN’S PERSPECTIVE

With the Indian modular furniture industry and ready-to-assemble segment maintaining a healthy 15-20% annual growth, there is growing demand for skilled workers who are attuned to working in a mechanised manufacturing environment using modern machines, tools and furniture fittings. A highly skilled workforce is key to production of high quality, aesthetically designed, functional modular furniture.

Against this backdrop, Hettich India has joined hands with FFSC to establish a woodworking institute that not only creates employment opportunities for the youth but also enhances the earnings potential of people working in this industry. The training institute has a 10,000 sq. ft premises equipped with quality infrastructure that surely encourage more young people to get trained in modern woodworking skills.

It is imperative to raise the woodwork training standards across the country. Although there are some 2,300 Government training institutes and 10,000 private ITIs where skill training is imparted, wood working courses followed at these institutes are seemingly out of sync with current industry trends and needs. Most of these courses are spread over three years that make it less attractive to prospective students.

To address the training need gap, we plan to re-draft the wood working course in consultation with our parent company in Germany and European wood working institutes. The course will be redesigned to 2-6 months in different areas of work: (i) Assembly of modular/RTA furniture; (ii) Use of modern hardware during

ANIL GOEL, CO-CHAIRMAN, FURNITURE AND FITTINGS SKILL COUNCIL AND MANAGING DIRECTOR, HETTICH INDIA PVT. LTD

fabrication of furniture; (iii) Conventional carpentry; (iv) Mechanised wood working; and (v) Installation of architectural hardware.

The institute will also train and develop a set of good trainers. In this, German woodworking experts will be involved in imparting training and finalising the course content. Trainers from industries that complement the wood working industry will also be involved in the training of trainer sessions to make the technical knowledge of the trainers wholesome.

As regards the ITIs, it is incumbent on the industry to adopt and modernise these institutes, such that their infrastructure is fully leveraged for skill development. Hettich has put forward a proposal to adopt two institutes in the engineering space in Vadodara, wherein we will (i) Upgrade the facilities of the institutes and support their administration; and (ii) Involve senior trainers from our factory in the institutes’ training programmes. Besides, we will also ensure that students graduating from the institutes find attractive employment opportunities.

On a larger plane, it would be our constant endeavour to the set high benchmark standards for woodwork training and development.


CEO’S MESSAGE

In a little over one year since the inception of the Furniture & Fittings Skill Council (FFSC), there has been renewed focus on skill development for the rapidly growing furniture industry in India. Importantly, the FFSC’s skill development programmes are aligned with the particular skill needs of industry, and to achieve this furniture and fittings industry leaders are playing an active part in fashioning the Council’s activities and engagements.

I have great pleasure in stating that FFSC has taken the initiative of setting up Corporate Skilling Centres with the help of industry members. The first of these Centres has been set up in the NCR with the support of Anil Goel, Co-Chairman of FFSC. The training facility is a joint venture of FFSC and Hettich India Pvt. Ltd. FFSC also endeavours to utilise the centre for training the youth from other backward caste (OBC) groups with the help of National Backward Classes Finance and Development Corporation (NBCFDC).

GURPAL SINGH, CEO, FURNITURE & FITTINGS SKILL COUNCIL

Women empowerment through skill development is one of the abiding goals of FFSC. Toward this, FFSC plans to develop job roles for women in both urban and rural areas. We have already trained 12 girls in Amravati, Maharashtra as carpenters of wooden furniture.

FFSC’s initiatives and programmes have relevancy not just in the Indian context but also in the emerging and developing worlds. It would be our constant endeavour to establish cross-border collaborative arrangements to upgrade furniture and fittings skill development programmes which will also have a bearing on inclusivity goals of different societies.

The ‘F&F Skills Network’ magazine will propel robust knowledge sharing on skill development in the furniture and fittings industry and spur partnerships between different stakeholders. I welcome your suggestions for enhancing the content of this publication.


(NSDC) and the Ministry of Skill Development and Entrepreneurship. The Governing Council brings together relevant and interested stakeholders for driving skill development across the country. Members have ensured that each Governing Council meeting be held in a different region to bring together special invitees and involve them in the planning process. The 4th and 5th Governing Council meetings were held at Hettich India, Mumbai and Homag India, Bengaluru, respectively.

Developing National Occupational Standards: The industry members extend support to FFSC in developing the National Occupational Standards (NOS). The process of developing the standards are split into various phases:

• Phase 1: Research analysis and assessment of the sector: A skill gap study is conducted for the sector on the basis of demand and supply. The study involves studying the market size, profile of the sector, current trends and spread of industry across the geographical locations, anticipated manpower requirements, employment patterns and the projected growth. FFSC is conducting workshops with active participation from industry members to understand the current supply and demand of manpower and the spread of workforce, age profile of workforce across levels. The existing sources of skilled manpower is studied along

FFSC is working towards creation of career paths whereby the workforce will be able to move towards progressively higher level of qualifications. While FFSC will ultimately cover the entire pyramid of the workforce in the furniture and fittings sector, from raw and unskilled workers to specialised and experienced job roles, to start with, the Council has focussed its scope of operation from the bottom of the pyramid, i.e., on the development of skills for unskilled workers / workers with some onsite experience / apprenticeship, etc.

Towards realising these objectives, FFSC has focussed upon development of relevant trade curriculum and other quality standards which encompass the process of certification and accreditation with due regard to having a monitored and efficient implementation mechanism.

Industry Partners

Industry is integrally engaged in the Council’s activities and is represented in the following bodies:

Governing Council: The Governing Council of FFSC is comprised of industry members including large corporates, representatives from small and medium enterprises, academia and nominated members from the National Skills Development Corporation

FFSC: SETTING NEW STANDARDS IN SKILLS DEVELOPMENT

BIG PICTURE

FFSC HAS FOCUSSED UPON DEVELOPMENT OF RELEVANT TRADE CURRICULUM AND OTHER QUALITY STANDARDS WHICH ENCOMPASS THE PROCESS OF CERTIFICATION AND ACCREDITATION WITH DUE REGARD TO HAVING A MONITORED AND EFFICIENT IMPLEMENTATION MECHANISM


with the seasonal fluctuations and changes anticipated in the employment patterns in the coming years.

• Phase 2: Occupational mapping: Occupational mapping provides a clear understanding of the job roles and helps in identifying what activities are common across jobs and between levels of the same job. FFSC conducts discussions with representatives from small, medium and small scale industries to validate the Occupational Map. FFSC identifies 20% job roles that comprise 80% of total workforce in each sub sector. Progression is routed beyond the existing map by including higher NSQF levels and mapping the average demand against the new job roles to be developed. Taskforces are formed which consist of industry representatives from each sub-sector and job roles are divided among them. The information collected on the job roles are shared with the taskforce members and they map the job roles on the NSQF scale.

• Phase 3: Functional analysis and data collection: Functional analysis is very critical to defining the Occupational Standards as it helps in identifying functions performed by an occupation and related outcomes. It defines the occupational competence, i.e., technical knowledge/skills, work process knowledge, skills for work relationships, work environment knowledge. Data collection is done through one-on-

one meetings and focussed group discussions with employer representatives and sector experts. The information collected would include information on role, grade, educational qualifications, key tasks, knowledge, skills and tools required to achieve the outcome etc. Validation workshops are conducted to obtain the final list of occupations for further research and development of NOS.

• Phase 4: Development of QP/NOS and industry validation: This phase involves creation of NOS for the identified job roles as per NSDC guidelines. Occupational Standards categorically details the main function of a job, the sub functions and the competencies thereof, related to the generic and domain specific aspects of the occupation in that vertical. NOS also includes the knowledge and understanding of facts, principles and methods which ensure that the person who measures up to the standard can be effective in other organisations, related job roles and be better placed to align with the industry. Industry validation workshops are conducted, amendments are made based on inputs received and submitted to the Qualification Registration Committee (QRC) for promulgation as the National Standards.

Industry as Training Partners

FFSC has utilised the existing training facilities of industry members and validated their centres to impart training under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 2.0 Scheme. Such centres are able to offer on-the-job training to the trainees and exposure to the modern machinery. FFSC also connects the industry partners to their corresponding state skill missions to impart training and employment with the mobilisation support provided by the State Skill Mission.

Centre of Excellence

In collaboration with FFSC, Hettich India is opening a state-of-art woodworking institute in the NCR as a part of their CSR initiative. The infrastructure will contain premises measuring over 10,000 sq. ft. with modern equipment and machinery to train people proficient in woodworking. German woodworking experts will be involved in imparting training and benchmarking the course to international standards. The centre will host training-of-trainer sessions for all the training sessions in the northern region.

Training the Trainers

FFSC identifies the professionals who could be trained as Master Trainers in identified designate centres. Training is imparted to the Master Trainer in a two-step process – first certification on domain skills and then on how to conduct the training (platform skills).


Certification on Domain Skills

The Master Trainers are subjected to Recognition of Prior Learning which consists of two days of orientation to inform and update them about the National Occupational Standards of the particular trade. On the third day assessment is done for the trainers and they should secure 90% and above in the domain skill (on the job roles) on which they intend to impart training.

In the event of multiple trades, multiple RPL certifications (multiple QPs) on domains skills are obtained by the Master Trainer – however the Platform Skills Training is common.

Certification on Training Skills (Platform Skills)

Those Master Trainers who qualify in RPL domain certification are given training on Platform Skills which is a training for six days involving orientation on the quality of the training delivery and soft skills of the trainers. These Master Trainers attend short-term training sessions with the Council’s industry partners to further upgrade their domain knowledge and attain further exposure on specific products.

Regional Associations

Regional associations play a vital role in providing the demand aggregation or the database for requirement of skilled manpower. So far, FFSC has received support from regional associations like ABID in Kolkata, AFMT in Mumbai, six furniture clusters (Thrissur, Malabar, Kollam, Zamorians, IFMT and FUMMA) in Kerala and the Bamboo Manufacturers Association in the North–East. FFSC plans to conduct seminars for associations in each region and actively participate in the exhibitions and training programmes organised by the associations.

Monster.com and Indiacom.com

FFSC has signed MoUs with Monster.com and Indiacom.com to provide the database of the certified trainees and get support from online portals

for the region-wise placement of the candidates. Monster.com is coming up with a mobile application which will provide potential employers access to the certified trainees.

Government schemes and industry involvement

On July 10, 2016, FFSC completed one year of its establishment. During this period the Council began skilling the youth through the Pradhan Mantri Kaushal Vikas Yojna (PMKVY). FFSC has assessed and certified around 18,619 trainees in the last one year. These candidates have been skilled through the affiliated training partners of FFSC.

The Ministry of Skill Development and Entrepreneurship, Government of India will launch PMKVY (2016- 2020) a modified and improved version of PMKVY (2015-16) in the near future. The scheme will enable the youth to take up skill training and become employable. It will be aligned to the Common Norms of the Ministry of Skill Development and Entrepreneurship.

This scheme envisages to provide skill training and certification to approximately 10 million youth in a span of four years from the date of implementation of the scheme. The training will be imparted in accordance to the curriculum and content of the respective Qualification Packs and National Skill Qualification Framework (NSQF) of Sector Skill Councils. The certified candidates will be mapped to Pradhan Mantri Suraksha Bima Yojna (PMSBY). Insurance clause will be mentioned on the certificate of the candidate. Biometric attendance for the candidates will also be mandatory.

The industry bodies of FFSC can also be a part of the Skill India Mission by becoming a Training Partner of FFSC. They can skill the youth through the PMKVY (2016-2020). If an industry becomes the training partner, training could be imparted as per the industry need and requirement. The same skilled trainees can also be absorbed by those


particular industries. Companies could thus save on the cost of skill training of those candidates. The skill training activities could also become a part of their CSR activities.

Similarly, there are State Skill Development Missions and several schemes of different ministries where the industry can also become training partners.

One of such scheme is under the National Backward Classes Finance & Development Corporation (NBCFDC) of the Ministry of Social Justice and Empowerment, Government of India. The NBCFDC promotes economic and social developmental activities of the poorer section of the backward classes. The organisation also provides financial assistance though their State Channelizing Agencies (SCA). FFSC has signed MoU with NBCFDC to promote skill development training among the backward classes. FFSC has also started skilling the youth belonging to backward classes in Loni, Uttar Pradesh and Fatehabad, Haryana. The industry can take various initiatives along with FFSC to provide training to potential candidates to make them employable.

Labour Market Information System (LMIS)

The ILO defines “Labour Market Information System (LMIS) as any information concerning the size and composition of the labour market or any part of the labour market, the way it or any part of it functions, its problems, the opportunities which may be available to it, and the employment-related intentions or aspirations of those who are part of it.”

With the support of National Skill Development Agency (NSDA) the beta version of the National Labour Market Information System was made live on May 10, 2016. LMIS acts as a portal for matching the demand and supply of skilled workforce for the furniture industry. The portal also provides information on skilling initiatives in the furniture domain across the country. It will give ready information about the labour market and serve as a platform for monitoring the performance of existing skill development programmes of FFSC running in different states.

The role of industry in the Skill India Mission is very crucial. Starting from training till providing livelihood to the skilled candidates the involvement of industry is also immensely required in every step of research, analysis, development of occupational standards, content, etc.

--By Shrikanth Sasi, Manager – Taskforces, Furniture & Fittings Skill Council


SKILL BUILDER

BRIDGING SKILL GAPSFFSC HAS ESTABLISHED A SOLID PLATFORM TO BUILD ROBUST SKILL DEVELOPMENT PROGRAMMES FOR THE INDUSTRY

ASAP is the skill mission of Kerala and is reputed to have the most efficient skill ecosystem out all the skill missions

• Rajasthan Skill and Livelihood DevelopmentCorporation (RSLDC): RSLDC was one of the first initiative from a state government towards skill development. Rajasthan being one of the key states for producing skilled workforce and ethnic designs in the furniture sector.

• PaschminBangaSociety forSkillDevelopment(PBSSD): PBSSD is the Skill Mission of West Bengal, a state which has the highest density of workforce of this sector.

• Himachal Pradesh Kaushal Vikas Nigam(HPKVN)

• Uttar Pradesh Skill Development Mission(UPSDM)

• Andhra Pradesh State Skill DevelopmentCorporation (APSSDC)

FFSC has signed a MoU with MANAS (Maulana Azad National Academy for Skills) under Ministry of Minority Affairs and with the Ministry of Rural Development for imparting training across India.

The furniture market in India is continuously adapting and customising its products according to the changing taste of the consumers. However, the industry faces challenges in getting well-trained persons. Here, FFSC works as a connecting link which mitigates the problem of industry and impart skill to the candidates.

FFSC is developing the Qualification Packs (QPs) and National Occupational Standards (NOS) for furniture & fittings industry. The QP & NOS of FFSC are the standards of performance that trainees are expected to achieve in their work, and the knowledge and skills the candidates require for performing their jobs effectively. The current QPs of FFSC are:

• AssistantCarpenter-WoodenFurniture

• Carpenter-WoodenFurniture

• AssistantFitter-ModularFurniture

• Fitter-ModularFurniture

• LockTechnician

Interior designing, upholstery, wood carving, plastic furniture, metal furniture, bamboo furniture are a few sub-sectors for which FFSC is preparing QPs and NOS.

FFSC is working with the University Grants Commission (UGC) and NSDC for starting of carpentry related courses in the Community Colleges and Bachelor of Vocational Courses.

State Skill Missions

FFSC has taken the initiative to tie up with State Skill Missions in order to implement industry- driven training with the help of State Governments. The Council has also taken the step to develop model content for each of its job roles and have that content translated into eight regional languages.

So far FFSC has signed MoUs with the following State Skill Missions:

• AdditionalSkillAcquisitionProgramme(ASAP):

Hon. Minister, Shri Rajiv Pratap (centre) with Gurpal Singh and Rajesh Agarwal, Joint Secretary & CVO, Ministry of Skill Development & Entrepreneurship, Government of India


the demonstration skill of ‘Cabinet Making’ with the help of industry partner Caple Industrial Solutions whereby candidates made three test projects showing the use of modern power tools and the future in store for Carpentry.

Revival of Traditional Art

Saharanpur: An FFSC team visited the hub of ethnic furniture manufacturers in Saharanpur to study the market impact. The annual value of wood carving industry is pegged at about Rs 400 crore and it supports the livelihood of about 150,000 artisans. Exports form a substantial part of the total economy of the woodcarving industry, with the main export destinations being the US, Europe, Brazil, Canada, China, Singapore, Sweden and Kuwait.

FFSC is in the process of setting up a training facility in Saharanpur where young children will be taught the art of carving after school hours so that they are groomed into master craftsmen.

Kerala: The traditional wood carving done in temples and interior structures is slowly becoming scarce with only few institutions providing a proper training. FFSC plans to develop a Qualification Pack and Curriculum with the help of master craftsmen so that the skills can be imparted to the next generation.

FFSC will take the help of ASAP in creating awareness of this art among the youth of Kerala.

Skilling Jail Inmates

FFSC has received the request from jail authorities in Jaipur to train the inmates for the job role of carpenter – wooden furniture.

Women Empowerment

Though this sector is known to predominantly employ male workforce, FFSC plans to develop job roles which will be suitable for both urban and rural women. Interior designer is a Job Role which will be popular among girls from semi-urban and urban cities. As a first for this sector, one of the Training Partners of FFSC is training 11 girls in Amravati, Maharashtra for the job role of Carpenter – Wooden Furniture.

Human Resource Outsourcing

The vision of Hon. Prime Minister Shri Narendra Modi is to make India the human resources capital of the world. The CEO of FFSC, Gurpal Singh, with his experience as the head of the Gulf & Middle East during his days with Confederation of Indian Industry, plans to tie up with the Saudi Embassy to outsource the skilled workforce to the countries in Gulf and Middle East. Some states where the trainees will be more than willing to relocate can benefit from such a tie up and will help in generating foreign remittance to the economy.

World Skill Competition

The World Skills Competition is the biggest vocational education and skills excellence event in the world that truly reflects global industry. The competitors represent the best of their peers and are selected from skill competitions in World Skills Member countries and regions. They are all under the age of 23 years (except for four skills that have the age limit of 25). They demonstrate technical abilities both individually and collectively to execute specific tasks for which they study and/or perform in their workplace.

FFSC is planning to prepare candidates who shall participate in the ‘Joinery’ and ‘Cabinet Making’ section of the Skill Competition to be held in Abu Dhabi in 2017. FFSC representatives are attending the Nypunyam Skill Fiesta – 2016, an initiative from NSDC and Government of Kerala to have a skill competition based on the format of World Skill Competition. In future, FFSC will conduct a national skill competition for the furniture sector to select good candidates who can represent India in the world event.

Participation in India Skill Week

FFSC recently participated in the India Skills Competition which was organised at Pragati Maidan during July 16-17, 2016. FFSC showcased


FORCE MULTIPLIER

INDIAN FURNITURE INDUSTRY: GEARED FOR HIGH GROWTH WORLD’S LARGEST FURNITURE RETAILER IKEA’S INDIA FORAY COULD PROVE TO BE A GROWTH MULTIPLIER FOR THE INDIAN FURNITURE INDUSTRY, TRIGGERING A NEW WAVE OF JOB CREATION AND ENTREPRENEURSHIP IN THIS SPACE

Gujarat. The company will not set up its own factory in the cluster but provide designs to Indian companies that do, and source products from them.

Reports suggest that Ikea would provide the technology and design for the products. It will import wood from Africa and Canada to India, outsource the work of making the furniture to companies in the cluster, and then export their output to its units overseas.

Ikea’s India foray is preceded by enterprising furniture e-com players who are also dealing in furniture. Players like Pepperfry and Urban Ladder are taking furniture to the very door-step of consumers. Horizontal players are not lagging behind. For Snapdeal, furniture category generates high revenue and margins due to high ticket size. Delhi-based Modspace, which delivers customised modular kitchens and home goods, was born out of the need for offering quality.

As new and large retail players enter the Indian furniture market, there will be a significant increase in the overall sourcing of furniture products from Indian suppliers. This will have to be complemented with creation of a large skilled workforce for furniture making. The FFSC skill development programmes are patterned to meet the current and future skills needs of the furniture and fittings industry.

World’s largest furniture retailer Ikea’s decision to invest Rs 1,500 crore in Mumbai as part of the company’s plans to have 25 stores across India by 2025 could prove to be a game-changer for the Indian furniture industry, and indeed for all stakeholders connected with the industry, including the workforce. For one, Ikea’s India presence will step up local sourcing of furniture products from Indian suppliers which in turn will induce the suppliers to increase their production levels and induct a greater number of skilled workers.

The Swedish major, which has been sourcing from India for its stores worldwide for three decades, plans to add suppliers and double its sourcing volumes by 2020. For the record, Ikea sources products worth 300 million euro for its global operations from India.

Ikea’s India operations will also open up numerous job opportunities in the country. The furniture retailer major plans to hire 15,000 people to run the 25 stores it plans to open. The Swedish chain is also looking at hiring the services of 37,500 more people indirectly to assist in running its stores. Each store would employ 500-600 workers and indirectly provide job opportunities for 1,500 people.

Ikea will also consider setting up a production unit in the country in order to fully tap the potential of ‘big middle class’ consumers in the market. In addition, the Swedish major has asked the Government to develop a “furniture cluster” near the Kandla port in


UPDATE

CENTRE OF EXCELLENCE

Lala Kundan Lal Memorial Society has established the first Model Centre for Furniture and Fittings Skill Council at Bhuna, Fatehbad, Haryana. All the costs of establishment have been borne by the Training Partner. The Model Centre is equipped with all the machinery, tools and other equipment and raw materials for imparting quality training. The Centre was inaugurated by Gurpal Singh, CEO, FFSC on April 5, 2016.

NEW MOUS SIGNED

UTTAR PRADESH SKILL DEVELOPMENT MISSION (UPSDM)

FFSC has signed a MoU with UPSDM for promotion of skill development training in furniture & fittings sector.

DFID PROJECT – DEVELOPMENT OF PRO-POOR QUALIFICATION PACKS (QPS)

FFSC is developing 20 new QPs:

Architectural Hardware

• Installer-Framelessglassdoor

• Installer-Frameddoor

NATIONAL BACKWARD CLASSES FINANCE & DEVELOPMENT CORPORATION (NBCFDC)

FFSC and NBCFDC have signed an MoU to promote skill development training among the backward classes people. NBCFDC, a Government of India Undertaking under the aegis of Ministry of Social Justice and Empowerment, promotes economic and developmental activities for the benefit of Backward Classes and to assist the poorer section of these classes in skill development and self-employment ventures. NBCFDC provides financial assistance through State Channelising Agencies (SCAs) nominated by the State Governments/UTs. NBCFDC also provides Micro Financing through SCAs/ Self Help Groups (SHGs). The Corporation can assist a wide range of income generating activities to assist the poorer section of these classes in skill development and self-employment ventures.

• AssistantInstaller- Frameless glass door • AssistantInstaller-Framed door • Assembler-Modular Kitchen

Bamboo furniture

• Roundbamboofurniture maker • Masterfurnituremaker • Mouldedcomponent maker - bamboo furniture • Finisher • Bamboomatboardmaker • Sliveringmachineoperator • Caneseatweaver

Wooden Furniture

• Polisher-woodenfurniture • Assistantpolisher • SofaMaker • MachineOperator-wood cutting (Non CNC) • Helper-Woodcutting CNC machine • Upholsterer

After the QRC approval the QPs will be ready for use. These QPs will be of level 2 to 4.

UPSDM acts as an integrated mission which combines the efforts of various state departments in achieving the skill development targets for the State. UPSDM is the implementing agency for skill development targeted at enhancing employability in Uttar Pradesh, subsuming the targets of various State Departments such as Rural Development, Urban Development, Labour, Minority Welfare, Social Welfare, etc.


KEY FACTOR

KEEPING UP WITH EMERGING INDUSTRY TRENDSSKILL DEVELOPMENT IS CENTRAL TO SUSTAINED GROWTH OF INDIA’S FURNITURE AND FITTINGS INDUSTRY

production, semi-finished products for cabinets, office and modular furniture form an integral part of furniture and fitting industry. In the wake of Government of India’s ‘Make in India’ initiative this segment is expected to see significant growth.

India with a long and rich tradition of carpentry and furniture making going back many centuries and having a large and diverse supply of timber, should have been a premier global maker of furniture. However, this was not to be; smaller countries like Malaysia have leapfrogged over India in this sphere over the last two decades. According to a recent study, India has 1,420 registered furniture factories. Of these only 1,157 factories (20%) were in operation. Labour shortage and lack of modernisation have been cited as the major bottlenecks for this industry. According to employment data of the National Sample Survey Organisation, 50% of the total employment in furniture manufacturing is concentrated in five states -- West Bengal, Uttar Pradesh, Maharashtra, Bihar and Gujarat.

In order to enable the furniture industry to grow to its full potential, it is important to analyse the three key drivers that significantly impact this sector:

The Indian furniture industry that covers the entire gamut of activities, from sourcing, manufacturing and distribution, to sales and after sales, is the 14th largest furniture market in the world. This industry employs more than 5,00,000 people in the organised sector. The major part of this industry, approximately 85%, is in the unorganised sector. Though the furniture sector accounts for only 0.5% of the national GDP, rising income levels and influence of global lifestyle trends have made the Indian furniture industry one of the most attractive investment sectors.

The Indian furniture industry as of 2015 was estimated to be worth US$ 17,922 million. Increased internet penetration and adoption of e-commerce is attracting entrepreneurs and artisans from across the country. E-com players like Amazon, PepperFry, UrbanLadder, Flipkart, Snap Deal, among others, have raised the benchmark for quality in the furniture industry.

Around 60% of the furniture sold in India is imported and imports are growing at 50-60% every year. As of 2015, a total of 10,476 importers shipped furniture to India, mainly from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, Philippines and Japan. This demand-supply gap provides immense opportunity for both machinery and non-machinery segment to capitalise on.

The machinery sector has the potential to grow in product groups like solid and panel wood processing, finishing lines, tools and accessories, etc. Apart from the above, major investments have been made in particle board, MDF manufacturing, laminates in recent years and these materials and value added products also offer huge opportunity for both national and international companies.

The non-machinery segment that includes products segment like fittings, hardware and structural parts and components, lighting systems, lights, electrical fittings for furniture production and interior designing, raw materials, timber and lumber, materials for furniture

Hon. Minister, Shri Rajiv Pratap Rudy (right) and Gurpal Singh with the participant handbook


them through various programmes that would lead them into formal organised furniture industry.

The manufacturing sector is increasingly adopting automation to increase efficiency, cycle time and quality standards. With automation, machine operation becomes important. But is the Indian labour geared up for this change? What does it require to create a skilled workforce?

Collaborative training can be one area that can help give this industry the required boost. Given the rapidly evolving technologies, investment in such machines for training purposes could be unviable. What instead can be done is to have corporates to run training programmes that can result in effective and efficient knowledge sharing. Also, the workforce needs to be trained in interior designing, upholstery,

contemporary wood carving, plastic and metal furniture and bamboo furniture that are in sync with the requirements of the market. In one such initiative, FFSC has taken the charge of setting up Corporate Skilling Centres with the help of Industry members. The first of these Centres is a joint venture of FFSC and Hettich India Pvt. Ltd. to produce highly skilled workforce for the modular furniture industry.

Given the enormous contributions of women to socio-economic development, there can be no meaningful advancement where women are excluded. Though this sector is known to predominantly employ male workforce, it is essential to create job roles suitable for both urban and rural women. In fact, as a first for this sector, one of the Training Partners of FFSC is training 11 girls in Amravati, Maharashtra as carpenters of wooden furniture.

Looking ahead, the FFSC’s comprehensive and calibrated skills development programmes will serve as the bedrock for building a large workforce for India’s furniture & fittings industry. In time, these experiences could also be shared with a vast number of developing and emerging markets across the globe.

• Changingconsumerdemographics

• Realestate/housingboom

• Tourismandhospitalityindustrygrowth.

With rapidly growing income levels in India over the past decade there has been an increased propensity to spend on lifestyle and consumer products. This has created a positive impact on the furniture sector and is expected to drive demand for furniture in the future.

With the growth in the real estate and commercial properties in India, demand for construction of housing and new office space has skyrocketed. While housing constitutes a major part of real estate in India, commercial construction has also been growing, in order to cater to the increasing demand for office space. Growth in housing and commercial establishments will have a positive effect on furniture demand, driven by the need to furnish new constructions.

Tourism growth has created new demand for hotel rooms which in turn has positively impacted the furniture and fittings industry.

The above three factors indicate that furniture manufacturers in India will need to cater to diverse tastes and preferences across customer segments and geographies. The Indian furniture industry is gradually transforming into a more organised and competitive sector.

Skill development will play an instrumental role in this industry’s onward growth journey. The Furniture & Fittings Skill Council is dedicated to the task of building a large skilled workforce in this space.

The furniture industry is labour-intensive. An estimated 7.18 million additional skilled workers will be required in this industry by 2022. As such, skill training in the traditional furniture industry is mostly done in an informal way, with skills being imparted to family members, relatives, etc. There is no system of certification. However, to build a skilled workforce it is important to identify the right people and certify


FURNITURE & FITTINGS SKILL COUNCILFurniture & Fittings Skill Council (FFSC) is a Not-for-Profit organization, registered under societies Registration Act XXI of 1860. The Council has been promoted by CII (Confederation of Indian Industry) with financial support from the National Skill Development Corporation (NSDC).

The aim of the sector skill council is to focus on establishing an effective and efficient eco-system for development and imparting of skills for the Furniture& Fittings industry including relevant curriculum, courses, information database, delivery system, standardization, accreditation and certification processes to enhance the employability of the Indian workforce globally.

Copyright © 2016, FFSC. All right reserved.

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No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), in part or full in any manner whatsoever, or translated into any language, without the prior written permission of the copyright owner. FFSC has made every effort to ensure the accuracy of the information and material presented in this document. Nonetheless, all information, estimates and opinions contained in this publication are subject to change without notice, and do not constitute professional advice in any manner. Neither FFSC nor any of its office bearers or analysts or employees accept or assume any responsibility or liability in respect of the information provided herein. However, any discrepancy, error, etc. found in this publication may please be brought to the notice of FFSC for appropriate correction.

Published by Furniture & Fittings Skill Council (FFSC), 407-408, 4th Floor, DLF City Court, M.G. Road Sikanderpur, Gurgaon- 122002; Ph: +91 124 6900720; Email: [email protected]

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