furniture furnishings

53

Upload: mohit-punjani

Post on 24-Oct-2014

115 views

Category:

Documents


2 download

TRANSCRIPT

Page 1: Furniture Furnishings
Page 2: Furniture Furnishings

Disclaimer for the Skill Gap Report:

NSDC engaged IMaCS (ICRA Management Consulting Services Limited) to prepare this report, which is based on independent research and analysis done by IMaCS. This report is not based or derived from any other report or research paper. Any similarity with any other paper may purely be a co-incidence.

All rights reserved. All copyright in this report and related works is solely and exclusively owned by NSDC. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of NSDC.

This report is for information purposes only. While due care has been taken during the compilation of this report to ensure that the information is accurate to the best of IMaCSs’ and NSDC’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.

IMaCS and NSDC neither recommend nor endorse any specific products or services that may have been mentioned in this report and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed in this report.

Neither IMaCS nor NSDC shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this report.

Page 3: Furniture Furnishings

Human Resource and Skill Requirements in the

Furniture & Furnishing industry

Study on mapping of human resource skill gaps in  

India till 2022 

Page 4: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 2 of 50

Table of Contents 1. Environment Scanning and Competitiveness of Furniture and Furnishing industry ............ 5

1.1. Overview ................................................................................................................................. 5

1.2. Furniture industry .................................................................................................................... 5

1.2.1. Domestic Consumption ................................................................................................... 5

1.2.2. Exports ............................................................................................................................ 6

1.2.3. Imports ............................................................................................................................ 6

1.2.4. Key Segments ................................................................................................................. 7

1.2.5. Key demand drivers ........................................................................................................ 8

1.2.6. State wise production of Furniture ................................................................................ 10

1.2.7. Key Players ................................................................................................................... 11

1.2.8. Key Success Factors...................................................................................................... 11

1.2.9. Key Risk Factors ........................................................................................................... 12

1.3. Furnishing industry ............................................................................................................... 12

1.3.1. Domestic Consumption ................................................................................................. 12

1.3.2. Exports .......................................................................................................................... 13

1.3.3. Imports .......................................................................................................................... 14

1.3.4. Major centres for Furnishings ....................................................................................... 14

1.3.5. Key Players ................................................................................................................... 15

1.3.6. Key Success factors ...................................................................................................... 16

1.3.7. Key Risk factors ............................................................................................................ 16

1.3.8. Demand drivers ............................................................................................................. 17

2. Human Resource and Skill Requirements ................................................................................ 18

2.1. Human Resource and Skill Requirements in Furniture industry ........................................... 18

2.1.1. Overview of Employment in Furniture industry ........................................................... 18

2.1.2. Value chain and core processes .................................................................................... 18

2.1.3. Profile of Human resource in Furniture industry .......................................................... 22

2.1.4. Skill requirements and skill gaps in the Furniture Industry .......................................... 24

2.1.5. Current Training & Education Infrastructure ................................................................ 31

2.1.6. Emerging trends in skill requirements .......................................................................... 32

2.2. Human Resource and skill requirements in Furnishing industry .......................................... 33

2.2.1. Overview of Employment in Furnishing industry ........................................................ 33

2.2.2. Value chain and core processes .................................................................................... 34

2.2.3. Profile of Human resource in Furnishing industry ........................................................ 37

Page 5: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 3 of 50

2.2.4. Skill requirements and skill gaps .................................................................................. 39

2.2.5. Current Training & Education Infrastructure ................................................................ 45

2.2.6. Emerging trends in skill requirements .......................................................................... 45

2.3. Projected Size and Human Resource Requirement ............................................................... 46

2.3.1. Projected Size and Human Resource Requirement for Furniture Industry ................... 46

2.3.2. Projected Size and Human Resource Requirement of the Furnishing Industry ............ 47

2.3.3. Focus areas where skill building is required ................................................................. 48

List of Figures

Figure 1: PFCE on Furniture, Furnishings & household equipment (in Rs crore at current prices) ....... 5 

Figure 2: Furniture Exports (Rs. crore) ................................................................................................... 6 

Figure 3: Furniture Imports (Rs crore) .................................................................................................... 7 

Figure 4: Furniture market Consumer segments ..................................................................................... 7 

Figure 5: Percentage Share of Women Employment Out of Total Employment in organised sector .... 9 

Figure 6: Share of different states in Furniture Production ................................................................... 10 

Figure 7: PFCE on Furnishings (at current prices) .............................................................................. 12 

Figure 8: Furnishings exports (Rs. crore) ............................................................................................. 13 

Figure 9: Demand Drivers of Furnishing industry ................................................................................ 17 

Figure 10: State wise employment in Furniture industry ...................................................................... 18 

Figure 11: Value chain of Furniture industry ........................................................................................ 19 

Figure 12: Share of different raw materials in Furniture manufacturing .............................................. 19 

Figure 13: Manufacturing process of Wood Furniture ......................................................................... 20 

Figure 14: Manufacturing process of Metal Furniture .......................................................................... 21 

Figure 15: Manufacturing process of Plastic Furniture ......................................................................... 22 

Figure 16: Distribution of workers in wood furniture production ........................................................ 23 

Figure 17: State wise employment in Furniture industry ...................................................................... 33 

Figure 18: Value Chain of Furnishing industry .................................................................................... 34 

Figure 19: Production processes in Furnishing ..................................................................................... 34 

Figure 20: Value chain of mattress industry ......................................................................................... 36 

Figure 21: Manufacturing process of coir Mattress ............................................................................. 37 

Figure 22: Profile of people employed ................................................................................................. 39 

Figure 23: Projected Size of Furniture Industry (Rs. billion) ............................................................... 46 

Figure 24: Skill Pyramid for the Furniture and Furnishing Industry .................................................... 48 

Page 6: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 4 of 50

List of Tables

Table 1: Key players in the Furniture industry ..................................................................................... 11 

Table 2: Key Success factors for the Furniture industry ....................................................................... 11 

Table 3: Key Centres for Furnishings ................................................................................................... 14 

Table 4: Key players in Furnishing industry ......................................................................................... 15 

Table 5: Distribution of Human Resource across functions in Furniture manufacturing ..................... 22 

Table 6: Educational profile of workforce in Furniture manufacturing ................................................ 23 

Table 7: Skill requirements and skill gaps in the Furniture Industry .................................................... 24 

Table 8: Training courses for Furniture industry .................................................................................. 31 

Table 9: Types of Stitches ..................................................................................................................... 35 

Table 10: Product categories in Furnishing .......................................................................................... 36 

Table 11: Distribution of Human Resource across functions in Furnishing manufacturing ................. 37 

Table 12: Educational Profile of the workforce in Furnishing Manufacturing ..................................... 38 

Table 13: Skill requirements and gaps in Furnishing industry ............................................................. 39 

Table 14: Human resource requirement in Furniture Industry (in ‘000s) ............................................. 46 

Table 15: Function-wise distribution of incremental human resource requirement (in ‘000s) ............. 47 

Table 16: Incremental human resource requirement in the Furnishing industry (in ‘000s) .................. 47 

Table 17: Function-wise incremental human resource requirement (in ‘000s) .................................... 47 

Table 18:Education-wise incremental human resource requirement (in ‘000s) ................................... 48 

Table 19: Focus areas where skill building is required (human resource requirement in ‘000s) .......... 49 

Page 7: Furniture Furnishings

Human R

1. E

F

1.1

The dom

2007-08

The dom

internati

The dom

crore in

time per

1.2

The pri

equipme

and on F

Rate (CA

from 20

Figure

Source: C 1 IBEF rep

45,099

2003-04

Resource and

Environm

Furnishin

. Overview

mestic Indian

8 accounting

mestic Furni

ional Home F

mestic Furni

2007-08. In

riod. The Fur

. Furnitur

1.2.1. Dom

ivate final

ent was Rs 8

Furnishings

AGR) in PF

03-04 to 200

1: PFCE on

Central Statistic port on Furnitur

52,817

2004-05

Skill Requirem

ment Sca

ng indus

w

n Furniture a

for around 1

shing marke

Furnishing m

iture market

ndia is a net i

rniture indus

re industr

mestic Cons

consumption

4,907 crore

to be Rs 20

CE on Furni

07-08.

n Furniture,

cal Organisatio re industry

61,367

2005-06

CAGR 17%

ments in Furn

anning a

stry

and Furnishi

1.5 % of the G

et is valued

market and E

t is estimated

importer if F

try gives dir

ry

sumption

n expenditu

in 2007-08.T

0,750 crore f

iture, Furnish

Furnishings

on (CSO), IMaC

7

73,57

6 2006-0

%

niture & Furni

and Com

ing market i

GDP.

at Rs 20,75

Exports of Fu

d to be wort

Furniture wit

ect employm

ure (PFCE)

The PFCE on

for the year

hings and ho

s & househo

CS Analysis

9

84,90

07 2007-

ishing Industry

mpetitiven

s estimated

0 crore in 2

urnishings we

th Rs 48,200

th imports w

ment to 3 lakh

on Furnitu

n Furniture is

2007-08. Th

ousehold equ

old equipmen

F

Household Equipment

19%

07

-08

Sh

ry

ness of F

to be around

2007-08. Ind

ere worth Rs

0 crore with

worth Rs 1,79

h people.1

ure, Furnishi

s estimated t

he Compoun

uipments wa

nt (in Rs cro

Furnishing24%

are of Furni

Pag

Furnitur

d Rs 69,000

ia is a key p

7,400 in 200

h exports of

91 crore for

ings and h

to be Rs 48,2

nded Annual

as 17% for th

ore at curren

Furniture57%

iture and Fu

ge 5 of 50

re and

crore in

player in

07-08.

Rs 1485

the same

ousehold

227 crore

l Growth

he period

nt prices)

urnishings

Page 8: Furniture Furnishings

Human R

The Fur

were wo

from 20

Source: D

The Furn

of the to

India is

in 2007-

imports

China to

towards

522

2003-04

Resource and

1.2.2. Exp

rniture expor

orth Rs. 1,48

03-04 to 200

DGFT, IMaCS A

niture export

otal Furniture

1.2.3. Imp

a net import

-08. The imp

were from C

o cater to the

high end of

991

2004-05

CA

Skill Requirem

ports

rts are a sma

85 crore in 2

07-08.The ke

F

Analysis

ts were dom

e exports.

ports

ter of Furnitu

ports have gr

China, Malay

e lower end o

the market. M

995

2005-06

AGR 30%

ments in Furn

all percentag

2007-08. How

ey export ma

Figure 2: Fur

minated by me

ure in value

rown with a

ysia, Italy an

of the marke

Metal and w

1,350

2006-07

niture & Furni

ge of the do

wever, the ex

arkets were U

rniture Expo

etal and woo

terms. The F

CAGR of 50

nd Germany

et, European

wood Furnitur

1,486

2007-08

ishing Industry

omestic prod

xport value h

US, EU, UAE

orts (Rs. cror

od furniture w

Furniture imp

0% from 200

y. While the

imports from

re accounted

Pfu

Furnof o

mate11

8

ry

duction. India

has grown w

E and Austra

re)

which accoun

ports amount

03-04 to 200

bulk of Furn

m Italy and G

d for around 6

Plastics urniture

12%

niture other erials1%

Sha

Pag

a’s Furniture

with a CAGR

alia.

nted for arou

ted to Rs 1,7

7-08. Majori

niture impor

Germany are

60% of the im

Wood furniture

39%

re of Furnit

ge 6 of 50

e exports

R of 30%

und 80 %

790 crore

ity of the

rted from

e targeted

mports.

Metal furniture

38%

e

ture exportss

Page 9: Furniture Furnishings

Human R

Source: D

The key

manufa

segment

The offi

seating,

wall-to-w

desking.

function

346

2003‐

Resource and

DGFT, IMaCS A

1.2.4. Key

y segments

acturing. Ho

t caters prima

fice furniture

operative d

wall units, fu

. Office Fur

nality. The co

f

6522

04 2004‐

Skill Requirem

F

Analysis

y Segments

based on

ousehold seg

arily to hotel

e segment ca

desking, exec

urniture for c

rniture is ch

oncept of mo

Figure

Household furniture, 65

%

2

824

05 2005‐

CAGR 51%

ments in Furn

Figure 3: Fur

usage are h

gment accou

ls, restaurant

aters to the

cutive furnit

communicati

haracterized

odular furnitu

e 4: Furnitu

5

4

1,35

06 2006‐

%

niture & Furni

rniture Impo

household f

unted for 6

ts, etc.

commercial

ture, others

ion areas). 40

by contem

ure has caugh

ure market C

5

1,79

07 2007‐

ishing Industry

orts (Rs cror

furniture, o

5% of the

and office

(cabinets an

0% of the of

mporary aesth

ht on in the I

Consumer seg

Offurn

20

m

Plasfurn

26

1

08

ry

re)

office furni

Furniture m

space. Offic

nd office sto

ffice Furnitur

hetics and s

Indian marke

gments

ffice niture 0%

Contract manufacturi

ng, 15%

stics iture

6%

Furniturof other

material13%

Shar

Pag

iture, and

market. The

ce Furniture

orage, filing

re market is o

style combin

et.

i

re r ls

e of Furnitu

ge 7 of 50

contract

contract

includes

systems,

operative

ned with

Mfu

Wofurn

38

ure imports

Metal urniture

23%

ood niture8%

Page 10: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 8 of 50

Home Furniture can be further segmented based on usage: Kitchen Furniture, Bedroom and Living

room Furniture. The concept of modular kitchen is fast catching on in India. Children’s Furniture is a

whole new concept developed in tune with today’s market demands and is a fast emerging segment.

With the comforts of children being the top priority in almost all homes, a lot of thought goes into

furnishing their rooms. The Home Furniture segment can also be segmented based on buyer profile in

terms of 'first home' buyers and replacement buyers.

1.2.5. Key demand drivers

Real estate/housing boom

The key factor driving the demand for Furniture and Furnishings is the expansion of housing in both

the major and smaller cities in India. Growth in both, housing and commercial development will have

a positive effect on furniture demand, driven by the need to furnish new constructions. There will be

demand for over 24.3 million new dwellings for self-living in urban India alone by 20152.

The rapid growth of the Indian economy has had a cascading effect on demand for commercial

property to help meet the needs of business, such as modern offices, warehouses, hotels and retail

shopping centres. Growth in commercial office space requirement is led by the burgeoning

outsourcing and information technology (IT) industry and organised retail. For example, IT and ITES

alone is estimated to require 150 million square feet across urban India by 2010. Similarly, the

organised retail industry is likely to require an additional 220 million square feet by 20103.

Growth in Tourism and Hospitality industry

Indian tourism industry has expanded rapidly over the past few years and is well poised to grow at a

faster pace in the coming years underpinned by the government support, rising income level and

various international sports events. Government of India’s ‘Incredible India’ campaign launched in

2002 has also been quite successful.

The Travel & Tourism Competitiveness Report 2009 brought out by World Economic Forum, ranks

India as 11th in the Asia-Pacific region and 62nd overall in a list of 133 assessed countries in 2009, up

three places since 2008.The growth in both domestic and inbound international tourism has aided the

growth of hotel industry. The foreign tourist arrival (FTA) has increased from 2.4 million in 1998 to

5.37 million in 2008. FTA registered a growth of 5.6% in 2008 over 2007. The domestic tourist visits

to all States/UTs have risen from 168.2 million in 1998 to 526.6 million in 2007 at a compounded

annual growth rate of 13.5%.

2 'Housing Skyline of India 2007-08', Indicus Analytics 3 IBEF

Page 11: Furniture Furnishings

Human R

It is estim

of travel

Furnitur

Organis

Internati

retailers

The pen

high end

in this se

Increasi

The PFC

as well

young d

Share of

the year

resulted

rising de

disposab

spend on

food ser

Figure

Source: M

4 IBEF F

Resource and

mated that b

l and tourism

re.4

sed Retail

ional retailer

and manufa

netration of o

d modular ki

egment inclu

ing Private

CE on Furni

as changing

demography.

f Women Em

rs in line with

in women h

emand of pr

ble househol

n household

rvices.

5: Percenta

Ministry of Sta

urniture repor

14.4

1992

Skill Requirem

by 2010, an a

m. The Furni

rs have main

acturers. The

organised ret

itchens, desig

ude Godrej L

Final Consu

shing and Fu

g lifestyles d

mployment o

h the changi

having more

roducts such

ld incomes f

chores whic

age Share of

atistics and Pr

rt

15.2

1994

ments in Furn

additional 12

ture industry

nly entered in

ey have targ

ail in the sec

gner furnitur

Lifespace, Fa

umption Exp

urniture has

due to increa

out of Total

ing mindsets

e impact on

as apparel,

for working

ch has led to

f Women Em

rogramme Imp

15.8

1996 1

niture & Furni

5,000 hotel r

y would bene

n the high-en

geted the pre

ctor is more

re, bathroom

abindia, Hom

penditure (P

been increas

asing partici

Employmen

and increasi

the purchas

footwear, ey

couples and

increased de

mployment O

mplementation

17 17.

998 200

ishing Industry

rooms would

efit through

nd market, th

emium segm

pronounced

m accessories

me Town, Sty

PFCE) on F

sing on acco

ipation of w

nt has been s

ing educatio

e decision o

yewear, jewe

lifestyle ch

emand of hou

ut of Total E

& Ministry of

.6 18.1

00 2002

ry

d be required

the subseque

hrough joint

ments for the

in the premi

s etc. The ma

yle Spa, and W

urniture an

ount of rising

women in urb

showing an i

on levels amo

of household

ellery etc. It

anges. Wom

usehold dura

Employment

f Labour, IMa

18.7

2004

Pag

d to cater to t

ent demand f

ventures wit

se turnkey s

ium category

ajor domesti

Welspun.

d Furnishin

g disposable

ban workfor

increasing tr

ong women.

d products as

has led to i

men have less

ables and out

t in organise

aCS Analysis

19

2006

ge 9 of 50

the needs

for Hotel

th Indian

solutions.

y such as

c players

ng

incomes

rce and a

rend over

This has

s well as

increased

s time to

t of home

ed sector

Page 12: Furniture Furnishings

Human R

In India

64 years

which i

economi

aspiratio

The Fur

market.

is spread

turning

Punjab,

followin

producti

Source: A

5 Econom6 ILO Lab

Resource and

, the “demog

s will be incr

is the targe

ically active

on and lifesty

1.2.6. Stat

rniture indust

The share of

d across the

and lacqueri

Uttar Prade

ng figure. M

ion.

nnual Survey of

mic Survey 20abour statistics

Ut

Skill Requirem

graphic divid

reasing stead

t segment f

e population

yle products.

te wise prod

try is domina

f unorganise

country. A f

ing. Indian st

esh and Ker

Maharashtra

Figure 6: S

of Industry, IMa

007-08 s

Rajastha7%

ttar Pradesh7%

AndhraPradesh

6%

ments in Furn

dend” which

dily from 62

for most of

in 20076. T

duction of F

ated by the u

ed segment is

few centres h

tates well kn

rala. The sta

and Tamil

Share of diffe

aCS Analysis

Gujarat8%

an

a h

Oth16

niture & Furni

h manifests in

.9% in 2006

f the marke

The young de

Furniture

unorganised

s higher in ca

have become

nown for wo

ate wise sha

l Nadu acc

ferent states i

M

TaNa13

Karnataka8%

hers6%

ishing Industry

n the proport

6 to 68.4 % i

eters, accoun

emography h

sector which

ase of wood

e famous for

oodwork incl

are in Furnit

ount for ne

in Furniture

Maharashtra35%

amil adu3%

a

ry

tion of work

in 2026.5The

nted for 61

has in turn a

h accounts fo

furniture. Th

their exquis

lude Gujarat,

ture product

early 50%

e Production

Page

king age grou

e age group o

1% of the 4

aided the de

or around 15

he Furniture

site carving,

, Jammu & K

tion is show

of Indian F

n

e 10 of 50

up of 15-

of 15-40,

46 crore

emand of

5% of the

e industry

inlaying,

Kashmir,

wn in the

Furniture

Page 13: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 11 of 50

1.2.7. Key Players

Some of the major companies in this segment are:

Table 1: Key players in the Furniture industry

Company Products Category

Nilkamal Plastic Furniture Manufacturer/Retailer

Godrej Home & office Furniture Manufacturer/Retailer

Home Centre Furniture & Furnishing Retail

Home Town Furniture & Furnishing Retail

Damro Home & office Furniture Manufacturer/Retailer

Wipro Office Furniture B2B

Zuari Home & office Furniture Manufacturer/Retailer

Note: This is not an exhaustive list

1.2.8. Key Success Factors

Table 2: Key Success factors for the Furniture industry

Innovative designs and solutions to cater to the premium segment

both in the home and office segments.

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

Invest in brand building:

Brand values have increasingly played a vital role in consumers’

purchase decisions in Furniture and Furnishings. A strong brand is a

must to succeed in the office Furniture segment.

Penetrate rural market:

The urban area has been the focus of organised retail which has led

to increased competition. Rural India is home to 720 million

consumers across .6 million villages. 17 % of these villages account

for 50 % of the rural population as well as 60 % of rural wealth

C

C

I

C

Page 14: Furniture Furnishings

Human R

1.3

The pri

Equipme

crore for

Source: C

C

I

45,099

2003-04

Resource and

1.2.9. Key

Threat of im

imported pr

Furniture seg

The increase

concern for

of wood.

The continu

. Furnishi

1.3.1. Dom

ivate final

ents was Rs

r the year 20

Central Statistic

F

52,817

2004-05

Skill Requirem

y Risk Facto

mports: The

roducts are

gment.

e in prices o

the Furniture

ation of the e

ing indust

mestic Cons

consumption

84,907 crore

007-08.

al Organisation

Figure 7: PF

Critical

Important

61,367

2005-06

CAGR 17%

ments in Furn

ors

Furniture im

offering stif

of commodit

e industry. E

economic slo

try

sumption

n expenditur

e in 2007-08

n (CSO), IMaC

FCE on Fur

73,579

6 2006-0

niture & Furni

mports in th

ff competiti

ties such as

Environmenta

owdown will

re (PFCE)

8. The PFCE

CS Analysis

rnishings (at

9

84,90

07 2007-

ishing Industry

he country h

on in both

steel, glass,

al concerns a

l affect the d

on Furnitur

E on Furnishi

F

t current pri

07

-08

ry

have been gr

the premium

, wood and

are likely to a

demand in the

re, Furnishi

ings is estim

Furnishing24%

HouseholdEquipmen

19%

ices)

Share of F

Page

rowing stead

m and mass

plastic is a

affect the av

e domestic m

ngs and H

mated to be R

d nt

urniture an

e 12 of 50

dily. The

s market

cause of

vailability

market

ousehold

Rs 20,750

Furn57

d Furnishin

iture7%

ngs

Page 15: Furniture Furnishings

Human R

Major F

Exports

US and

increase

“Others

pillow c

4,962

2003‐04

Resource and

urnishing pr

Furnishing

blinds

Bedding : m

Bed linen :s

Table linen

Bath linen

Other house

and/or Furn

1.3.2. Exp

of Furnishin

EU. The F

ed competitio

s” include pr

ases, table cl

5,892

2004‐05

CAGR 10.

Skill Requirem

roduct catego

g fabrics :up

mattresses an

sheets, pillow

n : tablecloth

: towels and

ehold textile

niture, flags, m

ports

ngs items we

Furnishing e

on in the inte

Fig

roducts such

loth etc. and

7,646

2005‐06

6%

ments in Furn

ories include

pholstery, cu

nd pillows

wcases, blan

hs, table napk

washcloths

e items as sh

mosquito ne

ere worth Rs

exports have

ernational ma

gure 8: Furn

as Mosquito

accounts for

7,826

2006‐07

niture & Furni

:

urtain materi

kets, and qui

kins, fabric p

hopping bags

ts and sunsh

s 7,400 crore

e been stagn

arket.

nishings exp

o nets, Terry

r 62 % of the

7,428

2007‐08

ishing Industry

al, curtains,

ilts

lace mats/se

s, laundry ba

ades

e in 2007-08

ating over th

ports (Rs. cro

Sour

towels, Nap

e exports.

O61

Mat0

8

ry

drapes, doo

ttings

ags, shoe bag

. The major

he last few

ore)

rce: DGFT, I

pkins, Pillow

S

Others1.7%

ttresses 0.5%

Page

or curtains an

gs, covers fo

export mark

years on ac

IMaCS Analy

covers, Bed

Share in Exp

Blanke2.8%

Curt8.1

e 13 of 50

nd fabric

or clothes

kets were

ccount of

lysis

d spreads,

ports

ets%

Btableand k

lin26

tains 1%

Bed , toilet

kitchen nen.9%

Page 16: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 14 of 50

1.3.3. Imports

Furnishing imports are quite insignificant compared to the domestic market size. Furnishing imports

were less than Rs 400 crore in 2007-08.

1.3.4. Major centres for Furnishings

Table 3: Key Centres for Furnishings

Centre Brief Description

Karur

Karur is known for the production of pillow covers, bedspreads as well

as kitchen and table linen. The home textile producers of Karur specialise

in certain finishes, such as PVA, starch, stain repellent, water repellent

and silicon finish. Some producers have begun the use of organic cotton

and the use of different fabrics such as polyester, silk and poly cotton

Panipat

The city of Panipat located in the state of Haryana is a major producer of

woollen home textile products. Producers in Panipat have of late started

experimenting with different fabrics such as polyester, silk and poly silk.

Some producers have also started the use of natural fabrics such as

bamboo and soya.

Chennai

Home textile producers in Chennai usually source raw materials from

Karur, to which value addition is undertaken. These producers are able to

deliver better quality products within a shorter period of time with the

benefit of technology and the services of experts.

Delhi

Delhi has emerged as one of the major production and export centres for

home textiles. It has an efficient infrastructure and easy availability of

skilled manpower. Most of the producers in Delhi source their raw

material from Panipat, to which value addition is done.

Mumbai

Mumbai is also one of the major production and export centres for home

textiles. Producers in Mumbai also source raw material from places such

as Karur, Salem, Erode and Bangalore and add value to it. On account of

the high operating costs in Mumbai, several producers have established

plants in surrounding areas of Vapi and Solapur. The home textile

producers in Mumbai have carved out a niche for themselves,

particularly in case of bedspreads, pillow and cushion covers and

bathroom textiles.

Jaipur It is an important centre for the production of home textiles, especially

those using the traditional techniques of tie-and-dye, block printing and

Page 17: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 15 of 50

Centre Brief Description

appliqué.

Cannanore

Cannanore, located in South India, is another hub that is well known for

the production of home textiles. About 60% of the textile production

done in this area is home textile. Home textile producers in Cannanore

are beginning to use fabrics such as cotton viscose, silk and cotton.

Producers here are also adding value with the help of embroidery, bead

work and sequin work.

Mirzapur and Badhohi

Mirzapur and Badhohi are small cities located in Uttar Pradesh, which

are major centres for the production of floor coverings and carpets.

1.3.5. Key Players

Some of the major companies in this segment are:

Table 4: Key players in Furnishing industry

Company Products Category

Welspun Terry towels, Bed Linen Manufacturer/Retailer

Home Centre Furniture & Furnishing Retail

Home Town Furniture & Furnishing Retail

Bombay Dyeing Bed linen, towels, Manufacturer/Retailer

Fabindia Bed, bath, table and kitchen

linen, upholstery fabric,

curtains, floor coverings

Retailer

Kurl-On Mattresses Manufacturer

Mahajan Overseas

Limited

Cushions & Throw Pillows,

KitchenLinens

Manufacturer

Page 18: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 16 of 50

1.3.6. Key Success factors

The key success factors for the Furnishing industry are:

Increasing productivity by leveraging technology

Investing in brand building activities which in turn would improve the profitability

Focusing on international markets other than the US and EU

Obtaining international certifications to overcome entry barriers in the international market.

Investing in IT would enable more efficient operations.

Focus on product innovation to cope with the rising competition from other countries in the

international market.

1.3.7. Key Risk factors

The major risk factors for the industry are:

Dependency on EU and US markets

Raw material prices: Failure of cotton crop and government policy in terms of minimum

support prices and export incentives for cotton can push up the cotton prices and affect the

entire value chain. The Man Made filaments/fibres are crude derivatives and move in line

with crude oil prices

Exchange rate fluctuations: Strengthening of Rs against international currencies would affect

the cost competitiveness in the international market

Protectionist measures: Countries are increasingly protecting their domestic industries from

surging imports. After Turkey and Egypt in the last year, Peru is now planning to impose a

safeguard on cotton yarn imports. Brazil has imposed anti-dumping duties on viscose yarn

imports from Asia.

Subsidies/government support in competing countries: Chinese government has raised the

export rebate rate for textiles and apparels thrice, from 11% at the beginning of 2008, to 15%

by February 2009, the highest level in 10 years. Vietnamese government has agreed to

provide support to the country’s T&C industry at a ratio of 40 Vietnamese dong per dollar of

export value. Cash subsidy of 15% of the fabric cost is given to exporters in Bangladesh who

source fabric locally.

Economic Slowdown: The continuation of the economic slowdown will impact demand, both

in the domestic and international markets.

Page 19: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 17 of 50

1.3.8. Demand drivers

The demand drivers of the Furnishing industry are similar to the Furniture industry and are depicted in

the following figure.

Figure 9: Demand Drivers of Furnishing industry

Demand Drivers

Real estate/housing

boom

Growth in Tourism and hospitality industry

Growth in Organised furnishing

Retail

Young Demography

Rising share of women of workforce

Growth in Exports

Page 20: Furniture Furnishings

Human R

2. Hu

2.1

The emp

Nadu ac

Source: A

The valu

the type

cum reta

7 IBEF re

Resource and

uman Re

. Human

2.1.1. Ove

ployment in

ccount for 40

nnual Survey of

2.1.2. Val

ue chain of t

e of raw mate

ailers. These

eport on Furni

U

A

Skill Requirem

esource a

n Resourc

erview of Em

Furniture in

0%.

Figure 10

of Industry and I

lue chain an

the Furniture

erials is also

units are typ

iture industry

G

Uttar Pradesh6%

Andhra Prade4%

ments in Furn

and Skil

ce and Ski

mployment

ndustry is est

0: State wise

IMaCS Analysi

nd core pro

e industry is

o indicated. T

pically locate

Karnataka9%

Kerala7%

Gujarat6%

eshOthe16%

niture & Furni

ll Requir

ill Requir

t in Furnitu

timated arou

employment

is

ocesses

depicted bel

The wood fu

ed in a cluste

M

Rajas12%

ers%

ishing Industry

rements

rements in

ure industry

und 3 lakh in

t in Furnitur

low. The typ

urniture indu

er.

Maharashtra26%

Tamil Nad14%

than%

ry

n Furnitu

y

n 20067. Ma

re industry

pical process

ustry has num

du

Page

ure indust

aharashtra an

es involved

mber of manu

e 18 of 50

try

nd Tamil

based on

ufacturer

Page 21: Furniture Furnishings

Human R

Various

wood, m

Source: IB

Raw materials•Wood•Steel/OtheMetals

•Glass•Plastic/PolUrethane

Other Furniture component manufacture• Furnishings• Wheels,Arm re

etc.

Resource and

types of raw

metal and pol

Figure

BEF Furniture

r

ly Man

ers

ests

Skill Requirem

Figu

w materials a

lymers.

e 12: Share o

report

M2

nufacturers

ments in Furn

ure 11: Value

are used for F

of different r

Metal25%

Plastic10%

Ot5

Whol

niture & Furni

e chain of F

Furniture ma

raw materia

thers5%

lesalers

ishing Industry

Furniture ind

aking in Indi

als in Furnitu

Wood60%

Retail

ry

dustry

ia. The key r

ure manufac

lers

Page

raw material

cturing

End custom

e 19 of 50

s include

er

Page 22: Furniture Furnishings

Human R

Wood F

Process

The trad

and plyw

particles

suitable

expansio

sealer. T

in South

Ivory Co

Processe

other sh

depends

termites

Process

The woo

compon

various p

this step

best suit

assembl

done by

Resource and

Furniture

ed wood:

ditional wood

wood. Comp

s, such as w

binder, are

on and disco

Therefore, it

h East Asia.

oast, etc.

ed wood is s

hapes. The ty

s on the cos

, and other d

ing:

od is further

ents of the

profiles base

p. Both hand

ted for hand

ed together.

carpenters.

Processed wlogs

Skill Requirem

den furniture

posites of w

wood chips,

also used.

oloration due

is rarely use

India impor

sourced from

ype of wood

t and durab

defects.

processed to

Furniture ar

ed on the des

tools and m

cutting. Hol

The process

wood

Figure 1

ments in Furn

e is made fr

wood such a

sawmill sha

A major di

e to moisture

d for outdoo

rts wood from

m the raw wo

depends on

ility factors.

o improve its

re made and

sign requirem

achines are u

les and slots

sing of wood

13: Manufac

niture & Furni

om natural w

as particle b

avings, or ev

isadvantage

, particularly

or furniture. I

m countries

ood processo

n the specific

. The wood

s texture. The

d the same a

ments. The w

used for cutt

s are made in

d which tran

Processing

cturing proce

ishing Industry

wood such a

boards, whic

ven saw dust

of particleb

y when it is n

India is one o

such as Ma

rs in the form

cation of the

has to be f

e surface of t

are assemble

worker has to

ting purpose.

nto the vario

nsforms the w

g

ess of Wood

ry

as Teak, Mah

ch are manu

t, and a syn

oard is that

not covered

of the larges

alaysia, Indon

m of rectang

retailer/cust

free of defec

the wood is

ed afterward

ensure mini

. Minute aspe

ous compone

wood to the

Furniture

Page

hogany & R

ufactured fro

nthetic resin

t it is very

with paint or

st consumers

nesia, Myan

gular sheets,

tomers whic

cts such as s

smoothened.

ds. Wood is

imum wastag

ects of the d

ents and the

skeleton Fur

Finishing

e 20 of 50

Rosewood

om wood

or other

prone to

r another

of wood

mar, and

logs and

h in turn

swelling,

. Various

cut into

ge during

esign are

same are

rniture is

Page 23: Furniture Furnishings

Human R

Finishin

The asse

material

topcoats

closed g

stains ar

and tran

with a

Solvents

and ethy

adhesive

ureaform

other fur

Metal a

plastic/p

Furnitur

Metal F

Various

perform

furniture

required

Resource and

ng:

embled Furn

ls include st

s. During fin

grained surfa

re solvent bo

nsparent film

solvent such

s found in v

yl alcohol. Th

es in the

maldehyde (U

rnishing mat

and plastic/p

polymer pro

re are shown

Furniture

metals and

ance charac

e as it is ligh

d.

(Stee

F

Skill Requirem

niture is poli

tains, basec

nishing, paste

aces. Stains a

orne such as p

s are shellac

h as alcoho

arnishes incl

hinners used

wood prod

UF) resins, a

terial

/polymer fur

ocessing ind

as below.

Figure 14

alloys such

teristics. Fo

ht weight in

Metal el, Aluminiu

etc)

Finishing

ments in Furn

ished to imp

oats, wash

e or diluted

are applied to

penetrating o

cs, varnishes,

l. Varnishes

lude turpent

d in lacquers

ducts indus

and contact

rniture are

dustries resp

4: Manufact

h as cast iro

r e.g. alumi

n nature whe

m

niture & Furni

prove the loo

coats, glaze

paste fillers

o penetrate th

oil and alcoh

, or lacquers

s, slow dryi

ine and xylo

include tolu

stry include

adhesives. T

parts of th

pectively. M

turing proce

on, steel, alu

inium may b

ere as steel w

Forgi

Assemb

ishing Industry

ok and feel

es, fillers, se

s may be req

he wood and

hol, while oth

. Shellac is a

ing coatings

ol. Solvents

ene, benzene

e hot melt

This is follow

he value ch

Manufacturing

ess of Metal F

uminium, etc

be used for

would be pre

ing

bling

ry

of the wood

ealers, highl

quired to lev

d produce a d

her stains are

a natural resi

, are typica

used in lacq

e and xylene

ts, polyviny

wed by addit

hain of ligh

g process o

Furniture

c. are used b

non load c

eferred wher

F

Page

d. Common

lights, enam

vel open gra

desired colou

e water borne

in which is c

ally of polyu

quers include

e. Major type

yl acetates

tion of Cush

ht engineer

of Metal and

based on the

carrying part

re greater st

Cutting

Fabrication

e 21 of 50

finishing

mels, and

ained and

ur. Some

e. Sealers

combined

urethane.

e acetone

es of glue

(PVA),

hions and

ring and

d plastic

e desired

ts of the

rength is

Page 24: Furniture Furnishings

Human R

Plastic F

Polymer

Compon

made of

The dist

followin

the smal

Ta

Source: I

*Other F

The dist

the follo

Pogr

Resource and

Furniture

rs such as hig

nents made o

f wood and m

2.1.3. Pr

tribution of

ng figure. Bu

ll units do no

able 5: Distr

Fun

Prod

Sou

Sale

Oth

Industry input

Functions inclu

tribution of h

owing figure.

olymer ranules

Skill Requirem

Figure 15

gh density P

of polymers

metal. The po

rofile of Hu

human reso

ulks of the pe

ot have expli

ribution of H

nctions

duction

urcing/Procur

es

er functions*

ts, IMaCS ana

ude Accounts,

human resou

.

ments in Furn

5: Manufactu

oly-ethylene

such as hand

olymer granu

uman resour

urce across

eople (80%-9

cit demarcat

Human Resou

rement

*

alysis

, Administrati

urce within p

Melting

niture & Furni

turing proces

e and Poly-ur

d rest, wheel

ules are melte

rce in Furn

functions in

90%) people

tion of functi

urce across f

ion, and Desig

production fu

ishing Industry

ss of Plastic

rethane are u

l base etc. ar

ed and mould

niture indus

n Furniture m

are engaged

ions for sour

functions in

Percen

80%- 9

2%-3%

2%-3%

5%-10%

gn etc.

function of w

Mouldi

ry

Furniture

used for mak

re also used

ded through

stry

manufacturin

d in the produ

cing, sales et

n Furniture m

ntage share

90%

%

%

%

wood based f

ing

Page

king plastic F

along with F

Injection mo

ng is depicte

uction functio

tc.

manufacturi

furniture is s

Fini

e 22 of 50

Furniture.

Furniture

oulding.

ed in the

on. Also,

ing

shown in

ishing

Page 25: Furniture Furnishings

Human R

Source: I

In cas

floor/Op

The edu

figure be

Source: I

Resource and

Fi

Industry input

se of un

perators/Wor

ucation-wise

elow. Aroun

Table

Educationa

Class X,XII

Diploma/IT

Others (MB

Industry input

Skill Requirem

igure 16: Dis

ts, IMaCS ana

norganised

rkers/Helpers

distribution

nd 95% of the

e 6: Educatio

al Level

I or below

TI

BA,CA, Engi

ts, IMaCS ana

FurnitFinish

/Assembworke

30%

Unskilled-Semiskilled

workers30%

ments in Furn

stribution of

alysis

and smal

s can be as h

of workforc

e workforce’

onal profile

ineers, Gradu

alysis

ture hing bling ers

%

niture & Furni

f workers in

ll scale

high as 95%.

ce in Furnitu

s education p

of workforce

uates)

ishing Industry

wood furnit

units the

ure manufact

profile is cla

e in Furnitu

Perc

90%

2%-

2%-

Carpenters40%

ry

ture producti

percentag

turing segme

ass X, XI or b

ure manufact

centage sha

%-95%

-5%

-5%

Page

ion

ge of the

ent is provid

below.

turing

re

e 23 of 50

e Shop

ed in the

Page 26: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 24 of 50

2.1.4. Skill requirements and skill gaps in the Furniture Industry

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

Function Level Skills Required Skill Gaps

Procurement

Purchase

Manager

Knowledge of various types of

wood (Teak, Rosewood, etc.) ,

plywood, polymer/plastic ,Metal

components, furnishing material

(Upholstery, Stuffing material

such as foam) and chemicals

used in processing (Thinners,

Adhesives etc.)

Knowledge of various types of

wood defects - swelling, holes,

fragile edges, knots etc. Quality

of the wood is important as any

defects at this stage would affect

the quality of the final product.

Awareness of the latest price

trends. The Furniture market is

very cost competitive and hence

minimising the raw material cost

is important for furnishing

manufacturers.

Negotiation and communication

skills for negotiating pricing and

delivery terms. It maybe

required to negotiate higher

discounts if the furnishing fabric

and other raw materials are not

of the specified quality.

Inadequate knowledge of

various types of raw

materials such as wood,

plastic & metal components

and quality parameters.

Negotiation and

communication skills.

Ability to calculate the requisite

amount of wood and stuffing

material required based on the

order size and likely wastage.

Insufficient knowledge of

Page 27: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 25 of 50

Function Level Skills Required Skill Gaps

Purchase

associate/

executive

Knowledge of various types of

wood defects and other quality

parameters.

Liaison with the component

manufacturers and ensure that

the components are made to the

specifications. This is required

for companies which source

non-wood components from

outside.

various types of wood

defects and other quality

parameters.

Sales

Sales

Manager/Store

Manager

This function is critical for

manufacturers cum retailers.

Understanding of various

aspects of customer behaviour.

For e.g. the profile of customer

as user/buyer will have impact

on his selection of furniture.

Detailed product knowledge to

train the sales associates.

Knowledge of offerings of

competing stores/brands.

Ability to communicate the

product knowledge in such a

manner that an average customer

can understand the same.

Negotiation and communication

skills - These skills are critical

for firms focussed on office and

institutional furniture.

Ability to handle multiple

accounts/customers

Understanding of customer

Insufficient ability to

customise the offerings to

the requirements of the

customers.

Lack of soft skills for

interacting with institutional

customers.

Page 28: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 26 of 50

Function Level Skills Required Skill Gaps

requirements of design and

quality

Basic computer skills. Should be

able to communicate the product

offerings through emails.

Knowledge of English is

desirable for personnel in firms

focussing on office Furniture

segment.

Sales Executive

Ability to assist in the sales

process

In depth knowledge of the store

offerings. Should be aware of

the offerings of competing

stores/brands.

Ability to work closely with

other functions such as

production

Time management skills to

handle multiple orders at the

same time.

Basic computer skills - Should

be able to communicate the

product offerings through

emails.

Knowledge of English is

desirable for firms focussing on

office Furniture segment.

Lack of good

communication skills and

interpersonal skills

Insufficient ability to

communicate the quality

price relationship to the

customers as they do not

understand the quality

aspects.

Less than adequate ability to

customise the offerings to

the requirements of the

customers.

This function is critical for

.

Page 29: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 27 of 50

Function Level Skills Required Skill Gaps

Design

Designer

Manufacturer cum retailers.

Design and develop Furniture

designs. Modify existing designs

to suit the current trends in the

market.

Should be creative and work

with number of materials to

enhance the appearance of the

Furniture.

Keep abreast with the latest

trends in the market - should be

aware of the designs, materials

and colours which are in vogue.

Knowledge of CAD

/AUTOCAD

Basic computer skills

Insufficient knowledge of

latest design trends

Creative skills required to

come up with fresh designs

is inadequate

Production

Production

Manager

In-depth Knowledge of

Furniture manufacturing

processing, finishing and

inspection methods

Process improvement skills -

waste control, finding solutions

to maintenance and engineering

related problems as most of the

units do not have a dedicated

R&D for process improvement.

Cost reduction through above

mentioned measures aids in

improving profitability.

Lack of adequate knowledge

of line balancing, work

study, and Quality Control

(this is because a large

number of managers have

been elevated by experience

rather than by formal

training).

The person employed picks

up the requisite skills with

experience.

Lack of man management

skills to manage the shop

Page 30: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 28 of 50

Function Level Skills Required Skill Gaps

Man management skills to

manage shop floor workers who

are mostly minimally educated.

Awareness of quality

requirements across various

stages of production.

Knowledge of Hindi/other

vernacular languages is a must

to interact with the shop floor

workers.

floor people.

Line

Supervisor/

Floor

supervisor

Knowledge of production

process involved in wood work

such as cutting, sanding,

polishing.

Ability to estimate the number

of pieces that can be cut from

one piece of wood.

Ability to minimise wastage

Should be able to train and

groom new recruits who do not

have the relevant experience.

Knowledge of different type of

wood characteristics

Knowledge of chemicals

(Thinners, dyes, Varnishes,

Adhesives, etc.) used during

finishing and processing to

guide the shop floor workers.

Knowledge of various cutting

and processing tools (saw

machines, hammers, spanner,

Lack of knowledge of

various chemicals

Lack of man management

skills to manage the shop

floor people.

Ability to minimise waste by

using the raw, semi finished

articles by design

modification.

Knowledge of various types

of chemicals.

Page 31: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 29 of 50

Function Level Skills Required Skill Gaps

drill machines, spray painting

machines) to guide the shop

floor workers

Good understanding of

chemicals (Thinners, dyes,

Varnishes, Adhesives etc.) used

during finishing and processing.

Good understanding of stitching

processes (for cushions, etc.).

Should be able to

reuse/repackage faulty furniture

articles by altering the design,

finish.

Man management skills to

manage the shop floor where

most of the workers are

minimally educated - Should be

able to motivate the workers in

the challenging work

atmosphere as the demand is

seasonal and order driven. Also,

the work environment has high

levels of air and noise pollution.

Knowledge of Hindi/other

vernacular languages is a must

to interact with the shop floor

workers.

Good machine control,

knowledge of various cutting

and processing tools (saw

machines, hammers, spanner,

drill machines, spray painting

Lack of proper knowledge of

machine operations

Inadequate ability to work

across different machines

Knowledge of various type

Page 32: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 30 of 50

Function Level Skills Required Skill Gaps

Operator

machines)

Ability to size timber, mark and

drill holes as per the design

specifications of the various

Furniture articles.

Should be able to identify and

use the right tool for a particular

operation.

Knowledge of chemicals

(Thinners, dyes, Varnishes,

Adhesives etc.) used during

finishing and processing.

Should be able to work on the

various components of the

Furniture being manufactured.

Knowledge of various joints and

their appropriate applications.

Should be able to work on half

lap, dove tail, tenon, mortise and

other type of joints.

Should be able to minimise

wastage and dispose the waste

materials.

Ability to maintain various tools

used in Furniture manufacturing.

Ability to manufacture simple

Furniture articles without much

supervision.

Should have good hand-eye

coordination to work on intricate

designs.

Physical stamina as the work

involves heavy articles. The

person should not have any

of chemicals

Ability to make simple

Furniture items without

supervision.

Page 33: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 31 of 50

Function Level Skills Required Skill Gaps

respiratory ailments.

Discipline at shop floor,

punctuality and regular

attendance at workplace.

Knowledge of maintenance

requirements of various machine

and tools.

2.1.5. Current Training & Education Infrastructure

Directorate General of Employment and Training (DGET) offers the following Furniture specific

courses.

Table 8: Training courses for Furniture industry

S. No Institution/Framework Name of

Course

Minimum

Educational

Qualification

Duration of

Training

Test/Course

Fee (Rs)

1

Modular Employable

Skills (MES) course

Basic Wood

Work 5th Standard 270 hours

2000

(Training

Fee) +

800(Test

Fee)*

2

Modular Employable

Skills (MES) course

Wooden

Furniture 5th Standard 270 hours

2000

(Training

Fee) +

800(Test

Fee)*

3

Craftsmen Training

Scheme (CTS)

Carpenter 8th Standard 1 year -

4 Craftsmen Training

Scheme (CTS)

Cane Willow

and Bamboo 8th Standard 1 year -

Page 34: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 32 of 50

S. No Institution/Framework Name of

Course

Minimum

Educational

Qualification

Duration of

Training

Test/Course

Fee (Rs)

Work

5

Craftsmen Training

Scheme (CTS)

Interior

Decoration

and Designing

10th Standard 1 year -

6

Apprenticeship

Training Scheme (ATS)

Carpenter 10th Standard 3 years -

7

Apprenticeship

Training Scheme (ATS)

Furniture and

Cabinet

Maker

8th Standard 3 years -

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

2.1.6. Emerging trends in skill requirements

Change in Industry Structure

The Furniture manufacturing industry is predominantly in the unorganised sector. The organised

sector accounts for around 15% - 20% of Furniture manufacturing.8 The share of the organised sector

is expected to rise which would result in greater focus on standardisation and quality aspects. The

consolidation has already begun in at the retail end with number of players in Furniture retailing

space.

Increased usage of Polymers and Metals

As mentioned earlier, India is one of the largest consumers of wood in South East Asia. India imports

wood from various countries such as Malaysia, Indonesia, Myanmar, and Ivory Coast, etc. MDF

boards are imported from Europe, soft and hard wood are imported from Russia and other South East

Asian countries. However, the supply of wood would be constrained and would not be able to keep

pace with the increase in demand of Furniture. This would result in increased usage of other materials

such as polymers, metals, glass etc. Also, non wood Furniture would help to make Furniture more 8 Annual Survey of Industry, IMaCS Analysis

Page 35: Furniture Furnishings

Human R

affordab

need to p

Focus on

The reta

requirem

Furnitur

Level of

As ment

Therefor

tools. Th

operator

2.2

The Fur

employm

nearly 5

Source: A

9 Source:

P

Resource and

ble and cater

possess the r

n solution se

ailers would

ments. Hence

re categories.

f technology

tioned earlie

re they do no

he level of te

rs have to be

. Human R

2.2.1. Ove

rnishing man

ment is show

0% of the em

nnual Survey of

: ASI, IMaCS

Gujar

Andhra Pradesh, 7%

Rajasthan, 4

Skill Requirem

r to the entry

requisite kno

elling

d have to fo

e, Manufactu

.

er, most of t

ot have the a

echnology is

imparted the

Resource

erview of Em

nufacturing

wn in the fol

mployment in

Figure 17

of Industry, IMa

Analysis

rat, 8%

Kerala, 7

4%

ments in Furn

y level segm

owledge to w

ocus on offe

urers cum re

the units in F

ability to abso

s expected to

e knowledge

e and skill

mployment

industry em

llowing figu

n the Furnish

7: State wise

aCS Analysis

Maharash

%

Others, 16

niture & Furni

ments. Hence

work with the

ering comple

etailers woul

Furniture ma

orb the latest

o go up in li

e of automati

l requirem

t in Furnish

mploys 8-9 L

ure. Tamil N

hing industry

employment

Ha

htra, 9%

6%

ishing Industry

, the produc

se materials.

ete solutions

ld require pe

anufacturing

t technology

ne with cons

ic tools.

ments in F

hing industr

Lakh people.

Nadu, Uttar P

y.

t in Furnitur

Tamil Nadu, 23%

Pra

aryana, 10%

ry

tion and des

.

s for office

eople with k

g do not hav

and work w

solidation in

Furnishin

ry

.9 The state

Pradesh and

re industry

Uttar adesh, 16%

Page

sign personn

and home F

knowledge of

ve the requis

with manual a

n the industry

ng industr

wise distrib

Haryana acc

e 33 of 50

nel would

Furniture

f various

ite scale.

and small

y and the

ry

bution of

count for

Page 36: Furniture Furnishings

Human R

The Fu

variety o

knitted a

Most of

after the

and finis

The vari

Resource and

2.2.2. Val

rnishing ind

of raw mate

and woven fa

f the furnishi

e fabric manu

shing to mak

ious activitie

Cutting

Skill Requirem

lue chain an

Figur

dustry is a p

erials such a

abrics.

ing articles s

ufacturing an

ke the requisi

es involved in

Figur

g

ments in Furn

nd core pro

re 18: Value

part of the

s cotton, silk

such as curta

nd processin

ite furnishing

n furnishing

re 19: Produ

Stichin

niture & Furni

ocesses

Chain of Fu

textile valu

k and fabric

ains, bed she

ng stage. The

g article.

manufacturi

uction proces

ng

ishing Industry

urnishing in

e chain. Th

c made of sy

eets, etc. hav

e processed f

ing are shown

sses in Furn

Stuffin

ry

ndustry

he home furn

ynthetic fibre

ve relatively

fabric underg

n in the follo

ishing

ng

Page

nishing prod

es and inclu

lesser value

goes cutting,

owing figure

Finishi

e 34 of 50

ducts use

udes both

addition

, stuffing

.

ing

Page 37: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 35 of 50

Cutting

The fabric is cut as per the defined pattern. Markings are made on the spread fabric which is

then cut/chopped in the cutting machine. Wastage reduction is a key consideration during this

step.

Stitching

A number of stitch and seam- types, and sewing machines are used for stitching the

furnishing item. Stitch classification is based on the structure of the stitch and method of

interlacing. Machine in each class may have the capability of producing several different

types of stitches depending on the machine structure and how it is set and threaded.

Table 9: Types of Stitches

Stitch Class

100 (Chain Stitch)

200 (Hand Stitch) 300 (Lockstitch)

400(Multi chain Stitch)

500(over-edge stitch)

600(Flat Seam Stitch)

Source: ATDC

A group of stitches with specific purpose is called seam, or in other words a line of stitches.

Seams are categorised into 8 classes and designated according to the types and minimum

number of components within the seam.

Assembling/Stuffing

This step is required in case of furnishing articles where foam, cotton or other stuffing

materials are used. The stuffing material is added to the fabric skeleton and compressed. This

is followed by stitching to close/seal the furnishing article.

Finishing

Finishing involves the following operation:

Removal of excess thread

Washing

Page 38: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 36 of 50

Pressing/ Ironing

Folding.

The value chain of the Furnishing industry varies depending on the product. As mentioned above, the

various product categories in furnishings include:

Table 10: Product categories in Furnishing

Product Category Products

Furnishing fabrics Upholstery, curtain material, curtains, drapes, door curtains and

fabric blinds

Bedding Mattresses and pillows

Bed linen Sheets, pillowcases, blankets, plaids, duvets and quilts

Table Linen tablecloths, table napkins, fabric place mats/settings

Bath Linen Towels & Washcloths

Others Shopping bags, laundry bags, shoe bags, covers for clothes and/or

Furniture, flags, mosquito nets and sunshades

The value chain of the mattress industry is shown below

Figure 20: Value chain of mattress industry

Raw material manufacturers

• Foam• Coir• Ticking fabric and others

Mattress manufacturer

Retailer

•Mattress Dealer• Bed manufacturer/retailer

End customer

Page 39: Furniture Furnishings

Human R

The dist

followin

producti

sales etc

Tab

F

P

S

S

O

Source: I

*Other F

Resource and

2.2.3. Pr

tribution of

ng figure. A

ion function.

c.

ble 11: Distr

Functions

Production

Sourcing/Pro

Sales/Mercha

Other functio

Industry input

Functions inclu

Coconut rope and l

Pressin

Stitching finishin

Skill Requirem

Figure 2

rofile of Hu

human reso

large propo

. Also, the sm

ibution of H

ocurement

andising

ons*

ts, IMaCS ana

ude Accounts,

coir latex

ng

and ng

ments in Furn

21: Manufa

uman resour

urce across

ortion of the

mall units do

Human Resou

alysis

, Administrati

Untwistincoir

Vulcani(hot ov

niture & Furni

acturing pro

rce in Furn

functions in

human reso

o not have ex

urce across f

ion, and Desig

ng the r

izing ven)

ishing Industry

cess of coir M

nishing indu

n Furniture m

ource (about

xplicit demar

functions in

Per

75%

2%

3%

5%

gn etc.

Shee

Trimmrequire

ry

Mattress

ustry

manufacturin

80%) peopl

rcation of fu

Furnishing

rcentage sha

%-80%

%-3%

%-5%

%-10%

eting

ming to ed size

Page

ng is depicte

le are engage

unctions for s

g manufactu

are

Laappli

Addifo

e 37 of 50

ed in the

ed in the

sourcing,

ring

atex ication

ition of oam

Page 40: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 38 of 50

In case of unorganised and small scale units the percentage of the Shop floor/Operators/

Workers/Helpers can be as high as 95%.

The education-wise distribution of workforce in Furniture manufacturing segment is provided in the

figure below:

Table 12: Educational Profile of the workforce in Furnishing Manufacturing

Educational Level Percentage share

Engineers

3%-5% Diploma or equivalent certification by other agencies

ITI and other vocational courses/Certificates 8%-10%

Other graduates

2%-3% CA/MBA/etc.

12th/10th standard/Minimally Educated 85%-90%

Source: Industry inputs, IMaCS analysis

Profile of people employed

The typical profile of people employed in production function, which is the dominant activity in the

furnishing manufacturing, is shown in the following figure.

Page 41: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 39 of 50

Figure 22: Profile of people employed

Source: Industry inputs, IMaCS analysis

2.2.4. Skill requirements and skill gaps

Table 13: Skill requirements and gaps in Furnishing industry

Function Level Skills Required Skill Gaps

Purchase

Manager

Knowledge of various types

of fabrics (type of material,

count/picks, dye

requirements) and stuffing

material (cotton, kapok,

foam, fibrefill.)

Knowledge of various types

of fabric defects such as

breakage of threads, missing

threads, stains, patches and

shade variation etc. Quality

In-depth knowledge of the

various types of fabric and

quality parameters.

Negotiation and

communication skills.

Minimally Educated

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

Engineer / Diploma/Minimally

educated with 5-10 years experience

Engineer / 5-10 years experience Manager

Line/Shift superisor

Supervisor

Opertator

Supervisor

Opertator

Line/Shift superisor

Supervisor

Operator

Page 42: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 40 of 50

Function Level Skills Required Skill Gaps

Procurement

of the fabric is important as

any defects at this stage

would affect the quality of

the final product.

Awareness of the latest price

trends in the fabric market.

The furnishings market is

very cost competitive and

hence minimising the raw

material cost is important for

furnishing manufacturers.

Negotiation and

communication skills for

negotiating pricing and

delivery terms with the

fabric manufacturers.

Purchase

associate/

executive

Ability to calculate the

amount of requisite quality

fabric and stuffing material

required based on the order

size and likely wastage.

Knowledge of various types

of fabric defects and other

quality parameters.

Liaison with the fabric

manufacturers and fabric

processors. This is required

for companies which source

the fabric and do the

processing through other

processing units.

Insufficient knowledge of

various types of fabric

defects and other quality

parameters.

Page 43: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 41 of 50

Function Level Skills Required Skill Gaps

Merchandising/

Sales

Senior

Merchandiser/

Sales Manager

Understanding of various

production activities as the

merchandiser is the interface

between the buyer and the

company

Negotiation and

communication skills. These

skills assume more

significance for export

oriented units.

Knowledge of foreign

languages such as French for

better co-ordination with the

buyer.

Ability to handle multiple

accounts/customers.

Thorough understanding of

costing.

Understanding of buyer

requirements of design and

quality.

Basic computer skills.

Should be able to

communicate the product

offerings through emails.

Lack of soft skills for

interacting with buyers in

the international market.

Knowledge of languages is

limited to English.

Inadequate understanding of

various factors affecting

costing.

Junior

Merchandiser/

Merchandising

executive/

Sales Executive

Understanding of various

production activities.

Ability to work closely with

other functions such as

production, purchase, etc.

Time management skills to

Understanding of various

production activities.

Page 44: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 42 of 50

Function Level Skills Required Skill Gaps

handle multiple orders at the

same time.

Basic computer skills

Design

Designer

Design and develop

furnishing designs according

to buyer requirements.

Modify existing designs to

suit the current trends in the

market.

The designer should be able

to understand the impact of

stuffing material on the final

appearance of the furnishing

article.

Keep abreast with the latest

fashion trends in the key

markets. Should be aware of

the colours, contours which

are in vogue.

Knowledge of Styling,

Elements of Design, Basics

of Costing, Fabric Study,

Pattern Making.

Understanding of buyer

requirements is inadequate

which leads to number of

iterations before the sample

is accepted.

Knowledge of latest fashion

trends in the international

markets is limited

Production

Manager

In-depth Knowledge of

production process and

inspection methods

Process improvement skills -

waste control, finding

solutions to maintenance and

engineering related problems

as most of the units do not

Inadequate knowledge of

speciality fabrics

Lack of adequate knowledge

of line balancing, work

study, and Quality Control

(this is because a large

number of managers have

been elevated by experience

Page 45: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 43 of 50

Function Level Skills Required Skill Gaps

Production

have a dedicated R&D for

process improvement.. Cost

reduction through above

mentioned measures aids in

improving profitability.

Man management skills to

manage shop floor workers

who are mostly minimally

educated.

Awareness of quality

requirements across various

stages of production.

Knowledge of Hindi/other

vernacular languages is a

must to interact with the

shop floor workers.

rather than by formal

training).

Line

Supervisor/

Floor

supervisor

Knowledge of production

processes such as cutting,

stuffing, stitching and

inspection methods

Knowledge of different type

of fabrics and stuffing

materials.

Ability to provide on the job

training to the new recruits

Man management skills to

manage the shop floor.

Knowledge of Hindi/other

vernacular languages is a

must to interact with the

shop floor workers.

Lack of knowledge of

various types of sewing

machines

Lack of soft skills to manage

the shop floor people.

Page 46: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 44 of 50

Function Level Skills Required Skill Gaps

Operator

Good machine control.

Knowledge of machines

used for cutting, sewing etc.

Knowledge of threading of

sewing machine, stitching on

different shapes, seaming

components together to the

design specifications.

Knowledge of maintenance

requirements of various

machines and tools.

Discipline at shop floor,

punctuality and regular

attendance at workplace.

Good eye sight and hand-eye

co-ordination

Lack of proper knowledge of

sewing machine operations

and different types of seams

and stitches

Ability to work across

different machines is

missing

Quality

Quality control/

Assurance

Manager

Quality requirements are all

the more important for

companies focussing on

international markets. Even

small quality issues can lead

to cancellation of order.

Understanding of the

customer requirements by

interacting with the

merchandiser.

Knowledge of international

standards is desirable.

Knowledge of international

quality standards is a

significant gap.

Knowledge of in line and

final quality testing

procedures.

Knowledge of cause effect

relationships of the various

defects.

Page 47: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 45 of 50

Function Level Skills Required Skill Gaps

Quality control

Executive

Must be able to understand

and prevent defects such as

loose threads, stains,

inconsistent filling,

inconsistent stuffing etc.

Should be able to understand

the various quality

parameters.

2.2.5. Current Training & Education Infrastructure

There are very few courses which exclusively cater to the requirements of the Furnishing industry.

However, courses are available which impart training/education in textiles. Also, very few of the

training initiatives are targeted at the shop floor level. The newly inducted workers learn through

informal training and learning from the experience of the existing work force.

The ATDC, ITIs and NIFT annually train up to 50,000 workers. However, the students passing out of

these courses are mostly absorbed in the garmenting sector.

2.2.6. Emerging trends in skill requirements

The availability of merchandising and designing skills would be crucial for increasing share

in export markets, tapping the potential in new markets and catering to the luxury /high end of

the domestic market. Currently, design is not a focus area for the furnishing companies.

The industry is likely to get increasingly consolidated in terms of scaling up of units,

especially the units which are focussed on export markets. Furnishing retail would see

increased penetration of organised retail and the focus would be on selling complete solutions

i.e. selling multiple and related furnishing articles under one roof..

Currently, Furnishing industry comes under the purview of Contract Labour Act, 1970 which

prohibits contract labour for the work that is perennial in nature. The exporters find it difficult

to manage the seasonal and order based volatility in demand on account of this. Change in the

Page 48: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 46 of 50

current regulations can lead to opening up of more employment opportunities. Also, the

current regulations prohibit women from being employed in night shifts. More flexible labour

regulations will positively affect the industry.

The scheme of integrated textile parks and various SEZs would also affect the availability of

labour.

2.3. Projected Size and Human Resource Requirement

2.3.1. Projected Size and Human Resource Requirement for Furniture Industry

The size of the Furniture industry is expected to grow from Rs. 594 billion currently to about Rs.

3,200 billion by 2022, growing at a CAGR of 13%10.

Figure 23: Projected Size of Furniture Industry (Rs. billion)

Source: IMaCS analysis

This industry would employ about 1.3 million persons by 2022, leading to an incremental

employment generation of about 0.9 million persons.

Table 14: Human resource requirement in Furniture Industry (in ‘000s)

2008 2012 2018 2022 Incremental

Furniture 380 571 963 1,271 892

Source: IMaCS analysis

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

594

1,026

2,127

3,223

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2008 2012 2018 2022

13%

Page 49: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 47 of 50

Table 15: Function-wise distribution of incremental human resource requirement (in ‘000s)

Function Incremental human resource requirement (in ‘000s)

Designing 9 Sourcing 27

Production Carpenters 310 Finishing and other assembly line workers

233

Others (helpers) 233 Sales 36 Admin and other support 45 Total 892

Source: IMaCS analysis

The requirement for the skilled workforce consisting of carpenters and other operators engaged in

finishing of furniture would constitute 0.5 million persons.

2.3.2. Projected Size and Human Resource Requirement of the Furnishing

Industry

The Furnishing Industry is expected to grow at a CAGR of about 13% and clock Rs. 1,36,000 crore in

revenue by 202211. This industry is likely to result in the creation of 2.5 million additional jobs till

2022.

Table 16: Incremental human resource requirement in the Furnishing industry (in ‘000s)

2008 2012 2018 2022 Incremental Furnishings

1,075 1,618

2,728

3,602

2,526

Source: IMaCS analysis

The profile of persons to be engaged in terms of function-wise and education-wise details is given

below.

Table 17: Function-wise incremental human resource requirement (in ‘000s)

Sales and others (merchandising)

Procurement Production Others (Purchase, logistics, admin)

Furnishing industry 126

76

2,147

177

Incremental human resource requirement

2,526

Source: IMaCS analysis

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

Page 50: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 48 of 50

Table 18:Education-wise incremental human resource requirement (in ‘000s)

Engineers and Diploma

Graduate ITI 12th Standard

Furnishing industry 101

76

202

2,147

Incremental human resource requirement

2,526

Source: IMaCS analysis

2.3.3. Focus areas where skill building is required

Given that the industry would required a varied profile of skill sets, the following figure presents an

overview of the profile of skill requirements as derived from human resource requirements across

different sectors of the Furniture and Furnishing Industry.

Figure 24: Skill Pyramid for the Furniture and Furnishing Industry

Source: Industry inputs, IMaCS analysis

The skill pyramid, in summary, captures where the Furniture and Furnishing Industry stands relatively

in terms of skills (a function of activity, educational requirements, and amount of ‘preparatory’ time

required to inculcate a specific skill) as compared to all other industries.

As can be observed, ‘Skill Levels 1 and 2’, have the highest incremental requirement of human

resource. This indicates the requirement for persons trained in carpentry, stitching and sewing

operations in the Furniture and Furnishing Industry.

1% Skill Level 4 (skills which are highly specialised involving

research and design)

Skill Level 3 (skills which require long drawn preparation as demonstrated by acquisition of

degrees, and involve highly technical or i l i )

Skill Level 2 (skills which require technical training inputs, knowledge of complex operations

and machinery, skills of supervision)

Skill Level 1 (skills which can be acquired with a short/modular and focussed intervention and thereby

enhancing employability of those with minimal education)

7%

12%

80%

Page 51: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 49 of 50

Table 19: Focus areas where skill building is required (human resource requirement in ‘000s)

Sector Areas where skill building is required

Incremental human resource requirement (in ‘000s)

Furniture Carpenters 310 Operators (finishing, etc.) 233 Furnishings Stitching, sewing, stuffing,

threading 2,147

Total 2,691 Source: IMaCS analysis

The total requirement of human resource across the above areas where skill building is required is

about 2.7 million persons till 2022.

Page 52: Furniture Furnishings

Human Resource and Skill Requirements in Furniture & Furnishing Industry

Page 50 of 50

This report has been prepared by ICRA Management Consulting Services Limited (IMaCS).

IMaCS is a multi-line management and development consulting firm headquartered in India. It has an

established track record of over 15 years in consulting across various sectors and countries. IMaCS

has completed over 950 consulting assignments and has worked in over 30 countries across the globe.

Through the process of carrying out several assignments over the last decade and half, IMaCS has

accumulated considerable analytical and consulting expertise, backed by the following capabilities:

• Deep understanding of policy formulation.

• Extensive and organised database on several sectors.

• Knowledge of key factors of success in different projects and programmes.

• Ability to research emerging trends in the economy, as well as in specific sectors.

• Insight into different programmes and organisational processes.

• Ability to carry out economic analysis, build quantitative and financial models to project future

performance and identify imperatives.

• Ability to identify the various types of risks and suggest appropriate strategies to mitigate the

same.

The Education and Skills practice at IMaCS focusses on identifying skill gaps, mapping future skill

requirements, and formulating strategies to address them. Our service offerings encompass diagnosis,

design and implementation of education and skill development interventions for government and

private sector.

R. Raghuttama Rao

Managing Director

IMaCS

4th floor, Electric Mansion

Appasaheb Marathe Marg, Prabhadevi

Mumbai – 400 025

Tel: 91 22 3047 0047, Fax: 91 22 3047 0081

Email: [email protected]

M. Sairam

Head – Process Consulting

IMaCS

5th floor, Karumuttu Centre

634, Anna Salai, Nandanam,

Chennai – 600 035

Tel: 91 44 2434 0043, Fax: 91 44 2434 3663

Email: [email protected]

Page 53: Furniture Furnishings

National Skill Development CorporationD-4, Clarion Collection, (Qutab Hotel)Shaheed Jeet Singh MargNew Delhi 11 0 016Tel : 011 46 56 0414Fax : 011 4656 0417Email : [email protected] www.nsdcindia.org