Post globalisation era in greater mumbai june 2006 efi – solar foundation mumbai



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Table: 11.5


Projected future market for express industry in India

Year


2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

Total Market

(in Rs. crore)



2493

2992

3590

4308

5169

6203

% Change


-

20.01

19.98

20

19.98

20

Source: EICI-AC Neilsen and ORG Marg
11.6 AVAILABILITY OF TRAINED PERSONNEL IN MUMBAI (Next five years)

Industry Perspective

DHL supports the concept of continuous development of its staff and has been regularly investing in training and social programmes to improve work environment. The company undertakes 'Personal Development Planning' reviews twice a year to ensure development of individual's potentials and plan career progression. It ensures that continuous job opportunities are provided so as to allow mobility of staff within the company. The company agrees that due to lack of dedicated institutions offering training to personnel in the express industry, the company is forced to take on the responsibility of providing necessary technology, customer service, marketing and sales training to new recruits.
Though the company largely depends on unskilled staff to further its business, Jeena & Co. has been recruiting trained and skilled personnel in the area of the IT and marketing. In the area of delivery and pick-up services, it recruits individual who have good communications skills and sound knowledge of geographical area.
Whether it is recruiting staff, appointing suppliers, sub contracting job or any other key services, TNT believes in the use of impartial selection process. The company believes in open management policy and involves its staff in decision-making processes. Although the company largely recruits skilled people from market, it also resorts to training semi-skilled people on-the-job.
In the area of consignment delivery, Skypak recruits unskilled people as there is no dearth of it. However, in technology intensive areas like in-scan and out-scan, etc., which the company has recently introduced, the company trains unskilled employees in-house. While in departments like IT, HR, accounts and marketing, the company procures manpower through market.

11.7 TRENDS IN INDIRECT EMPLOYMENT (Over the next five years)

Industry Perspective

The very nature of business transactions being simple, i.e. pick-up and delivery of documents and parcels, most of the companies agreed that there was limited scope for indirect employment. In the process of providing customer quality services, majority of the companies have ensured that their personnel are involved at every stage during the movement of documents or parcels.


However, the companies believe that whatever little indirect employment generated through this sector is in businesses like stationary, printing, transport, etc.
11.8 CHANGING TRENDS IN EMPLOYMENT SKILLS (Next five years)

As the sector consolidates further there would be several new jobs created at every level. For instance:


At the Operations level, the sector foresees employment opportunities in areas like Operation Assistants, Operation Supervisors, Operation Executives, Assistant Operation Managers, Operation Managers, etc. While, Operation Assistants and Operation Executives may require individuals to be 12th (HSC) passed. However, at higher levels of the hierarchy, one is required to be a graduate with experience and trade skills in the same or similar industry. Candidates are required to have good communication and interpersonal skills, while ownership of a two-wheeler would be seen as a value addition.
In the area of Sales and Marketing, candidates are required to be graduates with minimum 2/3 years experience in Direct Sales to corporate customers. The categories in the sales hierarchy are: Sales Executives, Sr. Sales Executives, Sales Managers, Area Mangers, Assistant Regional Sales Manages and Regional Sales Managers.
For higher positions the requirement is of post-graduate or diploma /degree in Marketing with some years experience in direct selling at corporate levels. Good communication and customer interaction skill, leadership, team management skills are a must for positions in sales and marketing.

In the area of Customer Service, individuals are required to be graduates with strong communication skills in English and Hindi with 2/3 years experience in customer service or tele-marketing in service industry. For a higher position in customer service, an individual requires to have more experience with managerial skills for leading team of customer service executives.


In the area of EDP Department, the positions available are that of Data Entry Operators (DEO) for which qualification is minimum of 12th (HSC) with good speed with alphanumeric entries. For higher levels, i.e. EDP executives or managers, individuals should have qualification in programming, hardware and networking management with relevant experience.
In the area of Accounts, the position requires individuals to be a finance graduate. In addition to checking for payments and claims, the job profile involves preparing bills and maintaining books of accounts. At the managerial level, individuals would be responsible for accounting activity, including books of accounts, receivables, payables, finalisation of quarterly/half yearly closing etc.
In the area of HR, individuals are required to have in-depth understanding of various HR processes like competency mapping, performance management, organisation structuring, job profiling, finalisation of KRA/KPI, some idea of assessment centre including various personality tests.
11.8.1 Assumed percentage point for employment skills

The employment skills that individuals are expected to posses to find gainful employment in the Courier Sector are given below along with their respective weightages (percentage points). These percentage points are purely based on our assumptions derived from interactions with individual interviewee during the course of the research activities. The percentage points should be ready in the following manner – number of individuals expected to possess the said skill per 100 individuals entering the sector.



Table: 11.8.1


Weightage assigned to employable skills for individuals entering Courier Sector over the next five years

Employment skills

Percentage Points

(per 100 individuals)

Technical background

15

Proficiency in IT

60

Interpersonal skills

100

Analytical skills

35

Management soft skills

35

Strong communication skills

100

Sales & marketing skills

40

Technology skills

30

Customer relations

65

Database management

15

Fluency in English/Hindi

100

Awareness of the local area

75

Pleasing personality

100



11.9 DIRECT & INDIRECT EMPLOYMENT PROJECTIONS (Next five years)

11.9.1 Direct Employment projections for Mumbai

There exists a huge disparity between the organised and unorganised segment with regards to number of companies and the market share. For instance, in 2002-03, 20 companies in the organised segment achieved a turnover of Rs. 1,628 crore enjoying a market share of 65 per cent, while the semi-organised segment consisting of 20 players and the unorganised segment with 1955 players together achieved business to the tune of Rs. 618 crore and made-up for only 25 per cent of the market.


Now as per the EICI figures, the organised segment grew at 20 per cent in 2002-03, while the sector on the whole has grown at a CAGR of 11 per cent. Based on these facts, we have pegged the growth of the semi-organised and unorganised segment at approximately 4 per cent (refer table 11.9.1-A).
Table: 11.9.1 - A

Employment projections for the Indian express service sector in 2004-05




Turnover

2002-03

Proj. growth rate per annum

for 2003-08

Organised


1,628 crore

20%

Semi-organised & unorganised

618 crore

4%

The Council had projected growth of the express industry (organised segment) for the period 2003-08 at an average rate of 20 per cent per annum, which is the same as that achieved during 2002-03.


Based on the above conclusion we have estimated the revenue growth for the organised segment and semi-organised & unorganised segment independently. Further, we have assumed that the growth pattern would continue to remain same for the next two years (i.e. 2009 & 2010). The revenue growth for the organised and semi-organised and unorganised segment during 2003-10 is as follows:
Table: 11.9.1 – B

Projected revenue for the courier sector (2003-10)

(Rs. in crore)

Year

2002-03

2003-4

2004-5

2005-6

2006-7

2007-8

2008-9

2009-10

Organised


1628

1953.6*

2344.3*

2813.2*

3375.8*

4050.9*

4861.2*

5833.4*

Semi-organised & unorganised

618*

642.7*

668.4*

695.2*

723*

751.9*

782*

813.2*

(* estimated)
In order to estimate the total employees in the express industry in Mumbai, we have divided the companies interviewed into two groups: organised and semi-organised & unorganised segment. We have calculated the average revenue per employee in both these cases (at 2004-05 prices).
Further, in order to arrive at a more accurate revenue-employee ratio we have collected revenue and employment figures for some more courier companies in the two categories.
Table: 11.9.1-C

Revenue per employee for organised sector

Companies

India turnover

(Rs. crore)

Employment


In India

Revenue per employee

(in Rs. Lakh)

TNT


180-200

600

30

Skypak


216.23

1650

13.10

Blue Dart


462.11

4000

11.55


(Average revenue per employee in organised segment: Rs. 18.21 lakh)
Table: 11.9.1 - D


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