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Furniture Furnishings

Furniture Furnishings

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Disclaimer for the Skill Gap Report: NSDC engaged IMaCS (ICRA Management Consulting Services Limited) to prepare this report, which is based on independent 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.

Human Resource and Skill Requirements in the Furniture & Furnishing industry

Study on mapping of human resource skill gaps in   India till 2022 

Human Resource and Skill Requirements in Furniture & Furnishing Industry

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

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

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

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

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

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

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

2.2.1. 2.2.2. 2.2.3.

Page 2 of 50

Human Resource and Skill Requirements in Furniture & Furnishing Industry

2.2.4. 2.2.5. 2.2.6. 2.3.

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

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

2.3.1. 2.3.2. 2.3.3.

List of 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 3 of 50

........ 39  Table 14: Human resource requirement in Furniture Industry (in ‘000s) ........................... 11  Table 2: Key Success factors for the Furniture industry ................................ 14  Table 4: Key players in Furnishing industry ..... 47  Table 16: Incremental human resource requirement in the Furnishing industry (in ‘000s) ............... 24  Table 8: Training courses for Furniture industry ............................................................................ 46  Table 15: Function-wise distribution of incremental human resource requirement (in ‘000s) .... 35  Table 10: Product categories in Furnishing ................ 48  Table 19: Focus areas where skill building is required (human resource requirement in ‘000s).......................................................................................................................................................................................................................... 15  Table 5: Distribution of Human Resource across functions in Furniture manufacturing ..................................................................................................................................... 47  Table 17: Function-wise incremental human resource requirement (in ‘000s) .................................... 38  Table 13: Skill requirements and gaps in Furnishing industry ..................................................................... 31  Table 9: Types of Stitches............................................. 36  Table 11: Distribution of Human Resource across functions in Furnishing manufacturing ....... 47  Table 18:Education-wise incremental human resource requirement (in ‘000s) ................ 23  Table 7: Skill requirements and skill gaps in the Furniture Industry ............................................................................................... 37  Table 12: Educational Profile of the workforce in Furnishing Manufacturing ................................................................ 11  Table 3: Key Centres for Furnishings ......................... 22  Table 6: Educational profile of workforce in Furniture manufacturing ....Human Resource and Skill Requirements in Furniture & Furnishing Industry List of Tables Table 1: Key players in the Furniture industry .............................. 49  Page 4 of 50 ......................................................................................................

907 crore in 2007-08.000 crore in n and ing d 2007-08 accounting for around 1 % of the G 8 1. In ndia is a net i importer if F Furniture wit imports w th worth Rs 1.750 crore in 2 et 2007-08.2.817 45.200 crore with exports of Rs 1485 t d th 0 h crore in 2007-08.1. The dom mestic Furnishing marke is valued at Rs 20. Furnitur industr re ry 1. India is a key player in p internati ional Home F Furnishing m market and E Exports of Fu urnishings we worth Rs 7.400 in 200 ere 07-08.T PFCE on Furniture is estimated t be Rs 48. Th Compoun for he nded Annual Growth l Rate (CA AGR) in PFCE on Furni iture.2 crore ent The n s to 227 and on F Furnishings to be Rs 20 0.2. Dom mestic Cons sumption The pri ivate final consumption expenditu (PFCE) on Furnitu n ure ure. The dom mestic Furni iture market is estimated to be wort Rs 48.90 07 Household Equipment 19% CAGR 17% % 61.79 crore for the same 91 time per riod.1.750 crore f the year 2007-08.579 Furnishing F 24% Furniture 57% 2003-04 2004-05 2005-06 6 2006-0 07 2007-08 Source: C Central Statistic Organisatio (CSO). Furnishings & househo equipmen (in Rs cro at curren prices) n s old nt ore nt Share of Furni iture and Fu urnishings 84.1 ment h 1. Furnishi ings and household equipme was Rs 84.Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry 1. IMaC Analysis cal on CS 1 IBEF rep on Furnitur industry port re Pag 5 of 50 ge .099 73.367 7 52. The Fur rniture industry gives direct employm to 3 lakh people. Figure 1: PFCE on Furniture. E Environm ment Sca anning a Com and mpetitiven of F ness Furnitur and re Furnishin indus F ng stry 1.5 GDP. Furnish hings and ho ousehold equ uipments wa 17% for th period as he from 2003-04 to 200 07-08. Overview w The dom mestic Indian Furniture a Furnishi market is estimated to be around Rs 69.

3.7 crore ted 790 -08. EU.486 1.48 crore in 2 orth 85 2007-08.2. Malay ysia. UAE and Austra U E alia. Italy an Germany While the bulk of Furn nd y. The imp ports have gr rown with a CAGR of 50 from 200 0% 03-04 to 2007-08. Figure 2: Fur F rniture Expo (Rs.Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry 1. niture impor rted from o e of et. otal e 1. IMaCS A Analysis The Furn niture export were dom ts minated by me and woo furniture w etal od which accoun nted for arou 80 % und of the to Furniture exports. m Germany are targeted e China to cater to the lower end o the marke European imports from Italy and G towards high end of the market. Exp ports The Fur rniture expor are a sma percentag of the do rts all ge omestic prod duction. 1. M Metal and w wood Furnitur accounted for around 6 re d 60% of the im mports. the ex xport value h grown w a CAGR of 30% has with R from 2003-04 to 200 07-08. Pag 6 of 50 ge . How wever. Majori of the ity in 2007imports were from C China. cror orts re) Share of Furnit ture exports s CA AGR 30% 991 995 1. The Furniture imp ter ure F ports amount to Rs 1. Imp ports India is a net import of Furnitu in value terms.The ke export ma ey arkets were US.350 522 Furn niture of o other mate erials 11 1% Plastics P fu urniture 12% Metal furniture 38% Wood furniture e 39% 2003-04 2004-05 2005-06 2006-07 8 2007-08 Source: D DGFT. India Furniture exports a’s e were wo Rs.2.2.

Key Segments y The key segments based on usage are h y household furniture. fu desking. operative d desking. 65 f 5 % Contract manufacturi m i ng. 40 of the of ion 0% ffice Furnitur market is operative re o wall-to-w units.Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry Figure 3: Fur F rniture Impo (Rs cror orts re) Share of Furnitu imports ure 1. exec cutive furnit ture. filing systems. Figure 4: Furnitu market Consumer seg e ure C gments Of ffice furn niture 20 0% Household furniture. The co oncept of mo odular furnitu has caugh on in the I ure ht Indian marke et.4. wall urniture for c communicati areas).791 CAGR 51% % 1.355 re Furnitur of other r material ls 13% Plas stics furniture 6% 26 Metal M fu urniture 23% 824 4 522 2 346 6 Wo ood furn niture 38 8% 2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 Source: D DGFT. Office Fur .2. IMaCS A Analysis 1. rniture is ch haracterized by contem mporary aesth hetics and s style combin with ned function nality. Offic Furniture includes ce seating. The offi furniture segment ca fice e aters to the commercial and office space. The contract segment caters prima t arily to hotel restaurant etc. 15% Pag 7 of 50 ge . ts. and contract manufa acturing. ls. others (cabinets an office sto nd orage. o f office furni iture. Ho ousehold seg gment accou unted for 65% of the Furniture m market.

The Home Furniture segment can also be segmented based on buyer profile in terms of 'first home' buyers and replacement buyers.5. There will be demand for over 24.2. driven by the need to furnish new constructions. For example.6% in 2008 over 2007. The domestic tourist visits to all States/UTs have risen from 168. 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. ranks India as 11th in the Asia-Pacific region and 62nd overall in a list of 133 assessed countries in 2009. The concept of modular kitchen is fast catching on in India. The foreign tourist arrival (FTA) has increased from 2. hotels and retail shopping centres. With the comforts of children being the top priority in almost all homes. housing and commercial development will have a positive effect on furniture demand. FTA registered a growth of 5.37 million in 2008. The rapid growth of the Indian economy has had a cascading effect on demand for commercial property to help meet the needs of business. Similarly. up three places since 2008. Government of India’s ‘Incredible India’ campaign launched in 2002 has also been quite successful. 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. the organised retail industry is likely to require an additional 220 million square feet by 20103.The growth in both domestic and inbound international tourism has aided the growth of hotel industry. The Travel & Tourism Competitiveness Report 2009 brought out by World Economic Forum. 1.2 million in 1998 to 526. IT and ITES alone is estimated to require 150 million square feet across urban India by 2010. warehouses.5%. Growth in both. Growth in commercial office space requirement is led by the burgeoning outsourcing and information technology (IT) industry and organised retail. a lot of thought goes into furnishing their rooms. rising income level and various international sports events.6 million in 2007 at a compounded annual growth rate of 13. Bedroom and Living room Furniture. 2 3 'Housing Skyline of India 2007-08'.Human Resource and Skill Requirements in Furniture & Furnishing Industry Home Furniture can be further segmented based on usage: Kitchen Furniture. Indicus Analytics IBEF Page 8 of 50 . Children’s Furniture is a whole new concept developed in tune with today’s market demands and is a fast emerging segment.4 million in 1998 to 5. such as modern offices.3 million new dwellings for self-living in urban India alone by 20152.

footwear. an a by additional 125.1 18. Sty Spa.8 17. y efit ent f Furnitur 4 re. Fa abindia. Organis Retail sed Internati ional retailer have main entered in the high-en market.7 19 17 14. This has rs h ing ing on ong resulted in women h having more impact on the purchase decision o household products as well as e of d s emand of pr roducts such as apparel. It has led to increased i rising de disposab househol incomes f working couples and lifestyle changes.4 15.6 1992 1994 1996 1998 200 00 2002 2004 2006 Source: M Ministry of Sta atistics and Pr rogramme Imp mplementation & Ministry of Labour. . ey yewear. desig gner furnitur bathroom accessories etc. and W me yle Welspun.000 hotel rooms would be required to cater to the needs r d d t of travel and tourism The Furniture industry would bene through the subseque demand for Hotel l m.Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry It is estim mated that b 2010. The ma domestic players re. th rs nly n nd hrough joint ventures wit Indian th retailers and manufa acturers. Figure 5: Percenta Share of Women Em age f mployment Out of Total E Employment in organise sector t ed 18. IMa Analysis f aCS 4 IBEF Furniture repor rt Pag 9 of 50 ge . s The pen netration of o organised retail in the sec is more pronounced in the premi ctor ium category such as y high end modular ki d itchens. Share of Women Em f mployment o of Total Employmen has been s out nt showing an i increasing tr rend over the year in line with the changi mindsets and increasi educatio levels amo women. Wom have less time to ble ld for men s spend on household chores whic has led to increased de n ch emand of hou usehold dura ables and out of home t food ser rvices. The have targ ey geted the pre emium segm ments for these turnkey solutions. Hom Town. jewe ellery etc. m s ajor in this se egment inclu Godrej L ude Lifespace. Increasi Private Final Consu ing umption Exp penditure (P PFCE) on Furniture and Furnishin ng The PFC on Furnishing and Fu CE urniture has been increas sing on acco ount of rising disposable incomes g as well as changing lifestyles d to increa g due asing partici ipation of w women in urb workfor and a ban rce young d demography.2 15.

IMa Analysis aCS 5 6 Econom Survey 20 mic 007-08 ILO Lab abour statistics s Page 10 of 50 e . on yle 1. the “demog graphic divid dend” which manifests in the proport h n tion of work king age grou of 15up s reasing stead from 62.9% in 2006 to 68.4 % i 2026.Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry In India. Jammu & Kashmir. inlaying. The sta wise sha in Furnit ate are ture product tion is show in the wn Punjab.5The age group of 15-40. dily 6 in e o 64 years will be incr which i the target segment f most of the marke is for f eters. T young de e The emography h in turn a has aided the de emand of aspiratio and lifesty products. Th Furniture industry f ed s ase he e d few have become famous for their exquis carving. accoun nted for 61 of the 46 crore 1% 4 economi ically active population in 20076.2. . Indian st tates well kn nown for wo oodwork incl lude Gujarat.6. A f centres h turning and lacqueri ing. Uttar Prade and Ker followin figure. Stat wise prod te duction of F Furniture The Fur rniture indust is domina try ated by the u unorganised sector which accounts fo around 15 of the h or 5% market. e site is spread across the country. Figure 6: S Share of diffe ferent states in Furniture Production i e n Andhra a Pradesh h 6% Ut Pradesh ttar 7% Oth hers 16 6% Maharashtra M 35% Rajastha an 7% Gujarat 8% Ta amil Na adu 13 3% Karnataka a 8% Source: Annual Survey of Industry. M ng Maharashtra and Tamil Nadu account for ne l early 50% of Indian Furniture F producti ion. The share of unorganise segment is higher in ca of wood furniture. K esh rala.

A strong brand is a must to succeed in the office Furniture segment.2.7. C Offer complete solutions and concepts.2. 17 % of these villages account for 50 % of the rural population as well as 60 % of rural wealth C I Page 11 of 50 . Rural India is home to 720 million consumers across . Penetrate rural market: The urban area has been the focus of organised retail which has led to increased competition.6 million villages. rather than piece-meal sales C Invest in brand building: Brand values have increasingly played a vital role in consumers’ purchase decisions in Furniture and Furnishings.Human Resource and Skill Requirements in Furniture & Furnishing Industry 1.8. Key Players Some of the major companies in this segment are: Table 1: Key players in the Furniture industry Company Nilkamal Godrej Home Centre Home Town Damro Wipro Zuari Products Plastic Furniture Home & office Furniture Furniture & Furnishing Furniture & Furnishing Home & office Furniture Office Furniture Home & office Furniture Category Manufacturer/Retailer Manufacturer/Retailer Retail Retail Manufacturer/Retailer B2B Manufacturer/Retailer Note: This is not an exhaustive list 1. 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.

2.907 crore in 2007-08 The PFCE on Furnishi ents e 8. economic slo owdown will affect the d l demand in the domestic market e m The continuation of the e 1. IMaC Analysis n CS Page 12 of 50 e . Furnishi indust ing try 1.817 45. glass.3. The increase in prices o commodit e of ties such as steel.1.3.9. Equipme was Rs 84.367 52. E ings is estim mated to be Rs 20. concern for the Furniture industry. The imported pr roducts are offering stif competition in both the premium and mass market ff m s Furniture seg gment. Figure 7: PF F FCE on Fur rnishings (at current pri t ices) Share of Furniture and Furnishin ngs 84. Dom mestic Cons sumption The pri ivate final consumption expenditur (PFCE) on Furnitur Furnishings and Household n re re.579 9 d Household Equipmen nt 19% Furniture 7% 57 Furnishing F 24% 2003-04 2004-05 2005-06 6 2006-0 07 2007-08 Source: C Central Statistical Organisation (CSO). Key Risk Facto y ors Threat of im mports: The Furniture im mports in th country h he have been gr rowing stead dily.Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry C I Critical Important 1.099 73.90 07 CAGR 17% 61. wood and plastic is a cause of . E e Environmenta concerns a likely to a al are affect the av vailability of wood.750 R crore for the year 20 r 007-08.

892 4. table cl loth etc. cro ore) S Share in Exp ports CAGR 10. doo curtains an fabric or nd blinds • • • • • Bedding : m mattresses an pillows nd Bed linen :s sheets.6% 7. r e Page 13 of 50 e . fabric place mats/settings Bath linen : towels and washcloths ehold textile items as sh e hopping bags laundry ba shoe bag covers fo clothes s. increase competitio in the inte Fig gure 8: Furn nishings exp ports (Rs. Pillow covers.3. flags.8% % Bed B table.9% 5. curtains. or Other house and/or Furn niture. The major export mark were Furnishing e exports have been stagnating over th last few years on ac e he ccount of US and EU.400 crore in 2007-08. Bed spreads. kins.826 7.2. The F ed on ernational ma arket.5% 0 Blanke ets 2.646 7. Exp ports ngs ere s e kets Exports of Furnishin items we worth Rs 7.428 Mat ttresses 0. Nap o pkins. Terry towels.Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry Major Furnishing pr roduct catego ories include: • Furnishing fabrics :up g pholstery. and accounts for 62 % of the exports.1 1% Sour DGFT. and qui ilts Table linen : tablecloth table napk n hs. ags. d pillow cases. blankets. m mosquito nets and sunshades 1. drapes. toilet and k kitchen lin nen 26.962 Others O 61 1. cu urtain material. gs. pillow wcases.7% 2003‐04 2004‐05 2005‐06 2006‐07 8 2007‐08 Curt tains 8. I rce: IMaCS Analy lysis “Others include pr s” roducts such as Mosquito nets.

Imports Furnishing imports are quite insignificant compared to the domestic market size. It has an efficient infrastructure and easy availability of skilled manpower. several producers have established plants in surrounding areas of Vapi and Solapur.3. to which value addition is done. Most of the producers in Delhi source their raw material from Panipat. 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. Home textile producers in Chennai usually source raw materials from Chennai Karur. particularly in case of bedspreads. bedspreads as well Karur as kitchen and table linen. especially those using the traditional techniques of tie-and-dye. Producers in Panipat have of late started experimenting with different fabrics such as polyester. Salem.3.3. silk and poly cotton The city of Panipat located in the state of Haryana is a major producer of Panipat woollen home textile products. Some producers have also started the use of natural fabrics such as bamboo and soya. stain repellent.Human Resource and Skill Requirements in Furniture & Furnishing Industry 1.4. Mumbai is also one of the major production and export centres for home textiles. to which value addition is undertaken. Jaipur It is an important centre for the production of home textiles. pillow and cushion covers and bathroom textiles. Furnishing imports were less than Rs 400 crore in 2007-08. block printing and Page 14 of 50 . Major centres for Furnishings Table 3: Key Centres for Furnishings Centre Brief Description Karur is known for the production of pillow covers. such as PVA. water repellent and silicon finish. silk and poly silk. Erode and Bangalore and add value to it. Producers in Mumbai also source raw material from places such as Karur. The home textile producers in Mumbai have carved out a niche for themselves. On account of Mumbai the high operating costs in Mumbai. starch. 1. Some producers have begun the use of organic cotton and the use of different fabrics such as polyester. The home textile producers of Karur specialise in certain finishes. Delhi has emerged as one of the major production and export centres for Delhi home textiles.

floor coverings Kurl-On Mahajan Limited Mattresses Overseas Cushions & Throw Pillows. 1. bath.3.Human Resource and Skill Requirements in Furniture & Furnishing Industry Centre Brief Description appliqué. bead work and sequin work. About 60% of the textile production done in this area is home textile. towels. table and kitchen Retailer linen. Category Manufacturer/Retailer Retail Retail Manufacturer/Retailer Bed. is another hub that is well known for the production of home textiles. KitchenLinens Manufacturer Manufacturer Page 15 of 50 .5. Mirzapur and Badhohi are small cities located in Uttar Pradesh. Producers here are also adding value with the help of embroidery. which Mirzapur and Badhohi are major centres for the production of floor coverings and carpets. Bed Linen Furniture & Furnishing Furniture & Furnishing Bed linen. silk and cotton. upholstery fabric. Key Players Some of the major companies in this segment are: Table 4: Key players in Furnishing industry Company Welspun Home Centre Home Town Bombay Dyeing Fabindia Products Terry towels. located in South India. curtains. Home textile producers in Cannanore Cannanore are beginning to use fabrics such as cotton viscose. Cannanore.

1. 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.6.7. 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.3. Page 16 of 50 . Economic Slowdown: The continuation of the economic slowdown will impact demand. to 15% by February 2009. 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. After Turkey and Egypt in the last year.Human Resource and Skill Requirements in Furniture & Furnishing Industry 1. Investing in IT would enable more efficient operations. 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. Focus on product innovation to cope with the rising competition from other countries in the international market. Brazil has imposed anti-dumping duties on viscose yarn imports from Asia. the highest level in 10 years. from 11% at the beginning of 2008. Cash subsidy of 15% of the fabric cost is given to exporters in Bangladesh who source fabric locally. both in the domestic and international markets. Peru is now planning to impose a safeguard on cotton yarn imports. Subsidies/government support in competing countries: Chinese government has raised the export rebate rate for textiles and apparels thrice.3.

Demand drivers The demand drivers of the Furnishing industry are similar to the Furniture industry and are depicted in the following figure.8.Human Resource and Skill Requirements in Furniture & Furnishing Industry 1.3. Figure 9: Demand Drivers of Furnishing industry Growth in Organised furnishing Retail Growth in Tourism and hospitality industry Young Demography Rising share of women of workforce Real estate/housing boom Demand Drivers Growth in Exports Page 17 of 50 .

1. Ma und n aharashtra an Tamil nd Nadu ac ccount for 40 0%. The typ pical processes involved based on the type of raw mate e erials is also indicated. Hu uman Re esource a Skil Requir and ll rements 2. These units are typ pically locate in a cluste ed er. Ove erview of Em mployment in Furnitu industry t ure y The emp ployment in Furniture in ndustry is est timated arou 3 lakh in 20067. T wood fu o The urniture indu ustry has num mber of manu ufacturer cum reta ailers. Figure 10 State wise employment in Furnitur industry 0: t re Andhra Prade A esh 4% Uttar Pradesh U 6% Gujarat G 6% Othe ers 16% % Maharashtra M 26% Tamil Nad du 14% Rajasthan 12% % Kerala 7% Karnataka 9% Source: Annual Survey of Industry and I IMaCS Analysi is 2.Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry 2.1. Val chain an core pro lue nd ocesses The valu chain of t Furniture industry is depicted bel ue the e low.1. Human Resourc and Ski Requir n ce ill rements in Furnitu indust n ure try 2. 7 IBEF re eport on Furni iture industry Page 18 of 50 e .2.1.

Man nufacture rs Whol lesalers Retail lers End customer Various types of raw materials a used for F w are Furniture ma aking in Indi The key r materials include ia. raw wood.Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry Figu 11: Value chain of Furniture ind ure e F dustry Raw materials •Wood •Steel/Other Metals •Glass •Plastic/Pol ly Urethane Other Furniture component manufacture ers • Furnishings • Wheels. Figure 12: Share o different r materia in Furnitu manufac e of raw als ure cturing thers Ot 5% 5 Plastic 10% Metal M 25% 2 Wood 60% Source: IB Furniture report BEF Page 19 of 50 e . m metal and pol lymers.Arm re ests etc.

Page 20 of 50 e . used for cutt ting purpose. The process sing of wood which tran d nsforms the w wood to the skeleton Fur rniture is done by carpenters. particularly when it is n covered with paint or another e y not r expansio and disco sealer. logs and other sh hapes. The worker has to ensure mini w imum wastag during ge various p this step Both hand tools and machines are u p. cts s termites. The ty of wood depends on the specific ype n cation of the retailer/cust tomers which in turn depends on the cost and durability factors. or ev saw dust and a syn ven t. free of defec such as swelling. nthetic resin or other suitable binder. are also used. The wood has to be f s . India is one o the larges consumers of wood or I of st in South East Asia. ects best suit for hand cutting. it is rarely used for outdoo furniture. India impor wood from countries such as Ma h rts m alaysia. and Ivory Co oast. The surface of t wood is smoothened. Processe wood is s ed sourced from the raw wo processors in the form of rectang m ood m gular sheets. Minute aspe of the design are . Indon nesia. Various od o s e the . A major di isadvantage of particleboard is that it is very prone to t on oloration due to moisture. whic are manu as b ch ufactured fro wood om particles such as w s. Processing: The woo is further processed to improve its texture. profiles base on the des ed sign requirem ments. and other d defects. T Therefore. Mah den e w as hogany & Rosewood R The trad and plyw wood. Comp posites of w wood such a particle boards. Hol and slots are made in the vario compone and the same are ted les s nto ous ents assembled together. etc.Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry Figure 1 Manufac 13: cturing proce of Wood Furniture ess Processed w wood logs Processing g Finishing Wood F Furniture Processed wood: ditional wood furniture is made from natural wood such a Teak. sawmill sha avings. wood chips. Myanmar. components of the Furniture ar made and the same are assemble afterward Wood is cut into re d a ed ds.

s lude turpentine and xylo Solvents used in lacq ol. Stains a applied to penetrate th wood and produce a d are o he d desired colou Some ur. ing coatings. wash coats. nishing.g. or lacquers. alumi e ht n ere w eferred wher greater strength is re furniture as it is ligh weight in nature whe as steel would be pre required d. based on the desired e inium may be used for non load c b carrying part of the ts performance characteristics. stains ar solvent bo re orne such as p penetrating o and alcoh while oth stains are water borne Sealers oil hol. se es. For e. Varnishes slow dryi h s. enam mels. glaze fillers. Th yl hinners used in lacquers include toluene. Manufacturing process o Metal and plastic M g of d Furnitur are shown as below. yl ureaform maldehyde (U resins. material include st ls tains. benzene and xylene Major type of glue d e e. highl lights.Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry Finishin ng: The asse embled Furn niture is poli ished to imp prove the loo and feel of the wood Common finishing ok d. paste or diluted paste fillers may be req e s quired to lev open gra vel ained and closed g grained surfa aces. basecoats. in c with a solvent such as alcohol. re Metal F Furniture 4: turing proce of Metal F ess Furniture Figure 14 Manufact Metal (Stee Aluminium el. etc) Forgi ing Cutting Finishing F Assemb bling Fabrication F Various metals and alloys such as cast iro steel. are typica ally of polyu urethane. quers include acetone e Solvents found in varnishes incl and ethy alcohol. alu h on. and tran nsparent films are shellac varnishes. etc are used b c. es adhesive in the wood prod es ducts indus stry include hot melt e ts. This is follow by addit UF) and T wed tion of Cush hions and other fur rnishing mat terial Metal a and plastic/p /polymer fur rniture are parts of th value ch he hain of ligh engineer ht ring and plastic/p polymer pro ocessing ind dustries resp pectively. uminium. Page 21 of 50 e . her e e. ealers. and topcoats During fin s. . a contact adhesives. Shellac is a natural resi which is combined cs. polyviny acetates (PVA).

Page 22 of 50 e .3.9 90% 2%-3% % 2%-3% % 5%-10% % The dist tribution of h human resou urce within p production function of w fu wood based f furniture is shown in s the follo owing figure. wheel base etc. sales et tc.1. .Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry Plastic F Furniture Figure 15 Manufactu 5: turing proces of Plastic Furniture ss Po olymer gr ranules Melting Mouldi ing Fini ishing Polymer such as hig density Poly-ethylene and Poly-ur rs gh e rethane are u used for mak king plastic Furniture. ude . the smal units do no have explicit demarcat ll ot tion of functi ions for sourcing. Administrati and Desig etc. The po olymer granu are melte and mould through Injection mo ules ed ded oulding. on. gn Percen ntage share 80%. F Compon nents made o polymers such as hand rest. Ta 5: Distr able ribution of H Human Resou urce across functions in Furniture m f n manufacturi ing Fun nctions Prod duction Sou urcing/Procur rement Sale es Other functions* * Source: I Industry input IMaCS ana ts. Bu of the pe ng ulks eople (80%-9 90%) people are engaged in the produ d uction functio Also. 2. Pr rofile of Hu uman resour in Furn rce niture indus stry tribution of human resource across functions in Furniture m n manufacturin is depicte in the ng ed The dist followin figure. ion. alysis *Other F Functions inclu Accounts. ar also used along with Furniture of d l re F made of wood and m f metal.

Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry Fi igure 16: Dis stribution of workers in wood furnit f ture producti ion UnskilledSemiskilled workers 30% Carpenters 40% Furnit ture Finish hing /Assemb bling worke ers 30% % Source: I Industry input IMaCS ana ts. Gradu uates) Source: I Industry input IMaCS ana ts. alysis Perc centage share 90% %-95% 2%-5% 2%-5% Page 23 of 50 e . XI or b nd e p ass below. Aroun 95% of the workforce’s education profile is cla X.XII or below I Diploma/IT TI Others (MB BA. The edu ucation-wise distribution of workforc in Furnitu manufact ce ure turing segme is provided in the ent figure be elow.CA. Table 6: Educatio e onal profile of workforce in Furnitu manufact e ure turing Educationa Level al Class X. Engi ineers. alysis In cas se of un norganised and smal ll scale units the percentag ge of the e Shop floor/Op perators/Wor rkers/Helpers can be as h s high as 95%.

etc.4. Insufficient knowledge of Inadequate knowledge of various types of raw materials such as wood. The Furniture market is very cost competitive and hence minimising the raw material cost is important for furnishing manufacturers.swelling. Stuffing material such as foam) and chemicals used in processing (Thinners. Quality of the wood is important as any defects at this stage would affect Procurement the quality of the final product. holes. polymer/plastic . Awareness of the latest price trends. Negotiation and communication skills. furnishing material (Upholstery.) . plastic & metal components and quality parameters. Adhesives etc.1.) Knowledge of various types of Purchase Manager wood defects .Human Resource and Skill Requirements in Furniture & Furnishing Industry 2. plywood. 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 Knowledge of various types of wood (Teak. Ability to calculate the requisite amount of wood and stuffing material required based on the order size and likely wastage. Rosewood.Metal components. knots etc. Negotiation and communication skills for negotiating pricing and delivery terms. Page 24 of 50 . fragile edges. It maybe required to negotiate higher discounts if the furnishing fabric and other raw materials are not of the specified quality.

g. This function is critical for manufacturers cum retailers. Skill Gaps various types of wood defects and other quality parameters. competing stores/brands.Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Purchase associate/ executive Skills Required Knowledge of various types of wood defects and other quality parameters. the profile of customer as user/buyer will have impact on his selection of furniture. Understanding of various aspects of customer behaviour. Ability to handle multiple accounts/customers Understanding of customer Page 25 of 50 . Lack of soft skills for interacting with institutional customers. Detailed product knowledge to train the sales associates.These skills are critical for firms focussed on office and institutional furniture. Sales Manager/Store Manager For e. This is required for companies which source non-wood components from outside. Knowledge of offerings of Insufficient ability to customise the offerings to the requirements of the customers. Negotiation and communication skills . Liaison with the component manufacturers and ensure that the components are made to the specifications. Ability Sales to communicate the product knowledge in such a manner that an average customer can understand the same.

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. This function is critical for .Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Skills Required requirements of design and quality Basic computer skills. Ability to work closely with other functions such as production Time management skills to handle multiple orders at the same time. Knowledge of English is desirable for firms focussing on office Furniture segment. Should be able to communicate the product offerings through emails.Should be able to communicate the product offerings through emails. Less than adequate ability to customise the offerings to the requirements of the customers. Page 26 of 50 . Should be aware of Sales Executive the offerings of competing stores/brands. Skill Gaps Ability to assist in the sales process In depth knowledge of the store offerings. Knowledge of English is desirable for personnel in firms focussing on office Furniture segment. Basic computer skills .

Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Skills Required Manufacturer cum retailers. Keep abreast with the latest trends in the market . work study. materials and colours which are in vogue. and Quality Control (this is because a large number of managers have been elevated by experience rather than by formal training). finishing and inspection methods Process improvement skills waste control. Cost reduction through above mentioned measures aids in improving profitability. Lack of man management skills to manage the shop Page 27 of 50 .should be aware of the designs. Skill Gaps Insufficient knowledge of latest design trends Creative skills required to come up with fresh designs is inadequate Design Designer Should be creative and work with number of materials to enhance the appearance of the Furniture. finding solutions Production Manager to maintenance and engineering related problems as most of the units do not have a dedicated Production R&D for process improvement. The person employed picks up the requisite skills with experience. Lack of adequate knowledge of line balancing. Knowledge of CAD /AUTOCAD Basic computer skills In-depth Knowledge of Furniture manufacturing processing. Modify existing designs to suit the current trends in the market. Design and develop Furniture designs.

sanding. Ability to minimise waste by using the raw. spanner. Ability to minimise wastage Should be able to train and groom new recruits who do not have the relevant experience. Knowledge of various cutting and processing tools (saw machines. Awareness of quality requirements across various stages of production.) used during finishing and processing to guide the shop floor workers. Skill Gaps floor people. Knowledge of various types of chemicals.Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Skills Required Man management skills to manage shop floor workers who are mostly minimally educated. Page 28 of 50 . etc. Knowledge of Hindi/other vernacular languages is a must to interact with the shop floor workers. Adhesives. Line Supervisor/ Floor supervisor Knowledge of different type of wood characteristics Knowledge of chemicals (Thinners. Knowledge of production process involved in wood work such as cutting. polishing. Lack of knowledge of various chemicals Lack of man management skills to manage the shop floor people. Varnishes. hammers. dyes. semi finished articles by design modification. Ability to estimate the number of pieces that can be cut from one piece of wood.

Man management skills to manage the shop floor where most of the workers are minimally educated . Should be able to reuse/repackage faulty furniture articles by altering the design. Knowledge of Hindi/other vernacular languages is a must to interact with the shop floor workers.Should be able to motivate the workers in the challenging work atmosphere as the demand is seasonal and order driven. etc. Varnishes. spray painting machines) to guide the shop floor workers Good understanding of chemicals (Thinners. Good understanding of stitching processes (for cushions. Skill Gaps Good machine control. Also. drill machines. hammers. the work environment has high levels of air and noise pollution.Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Skills Required drill machines. knowledge of various cutting and processing tools (saw machines. spray painting Lack of proper knowledge of machine operations Inadequate ability to work across different machines Knowledge of various type Page 29 of 50 . Adhesives etc. finish. spanner.). dyes.) used during finishing and processing.

Should be able to work on the various components of the Furniture being manufactured. Ability to manufacture simple Furniture articles without much supervision. dove tail. Knowledge of various joints and their appropriate applications.Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Skills Required machines) Ability to size timber. tenon. Should have good hand-eye coordination to work on intricate designs. Ability to maintain various tools used in Furniture manufacturing. Should be able to work on half lap. Operator (Thinners. Varnishes. Knowledge of chemicals Skill Gaps of chemicals Ability to make simple Furniture items without supervision. The person should not have any Page 30 of 50 .) used during finishing and processing. Should be able to identify and use the right tool for a particular operation. Physical stamina as the work involves heavy articles. dyes. Adhesives etc. mark and drill holes as per the design specifications of the various Furniture articles. Should be able to minimise wastage and dispose the waste materials. mortise and other type of joints.

Current Training & Education Infrastructure Directorate General of Employment and Training (DGET) offers the following Furniture specific courses. No Institution/Framework 1 Modular Employable Skills (MES) course 2 Modular Employable Skills (MES) course Craftsmen Training 3 Scheme (CTS) Carpenter 8th Standard 1 year - 4 Craftsmen Training Scheme (CTS) Cane Willow and Bamboo 8th Standard 1 year - Page 31 of 50 .1.Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Skills Required respiratory ailments. punctuality and regular attendance at workplace.5. Skill Gaps 2. Table 8: Training courses for Furniture industry Name of Course Minimum Educational Qualification Duration of Training Test/Course Fee (Rs) 2000 Basic Wood Work (Training 5th Standard 270 hours Fee) + 800(Test Fee)* 2000 Wooden Furniture (Training 5th Standard 270 hours Fee) + 800(Test Fee)* S. Knowledge of maintenance requirements of various machine and tools. Discipline at shop floor.

1. metals.8 The share of the organised sector is expected to rise which would result in greater focus on standardisation and quality aspects. and Ivory Coast. Myanmar. Indonesia. Emerging trends in skill requirements Change in Industry Structure The Furniture manufacturing industry is predominantly in the unorganised sector. non wood Furniture would help to make Furniture more 8 Annual Survey of Industry. etc. No Institution/Framework Name of Course Work Interior Decoration and Designing Minimum Educational Qualification Duration of Training Test/Course Fee (Rs) 5 Craftsmen Training Scheme (CTS) 10th Standard 1 year - 6 Apprenticeship Training Scheme (ATS) Carpenter 10th Standard 3 years - 7 Apprenticeship Training Scheme (ATS) Furniture and Cabinet Maker 8th Standard 3 years - *Candidates belonging to SC/ST category and women are given 25% exemption in fee. Increased usage of Polymers and Metals As mentioned earlier. The consolidation has already begun in at the retail end with number of players in Furniture retailing space.Human Resource and Skill Requirements in Furniture & Furnishing Industry S. India is one of the largest consumers of wood in South East Asia. The organised sector accounts for around 15% . India imports wood from various countries such as Malaysia. IMaCS Analysis Page 32 of 50 .6. However. glass etc. This would result in increased usage of other materials such as polymers.20% of Furniture manufacturing. soft and hard wood are imported from Russia and other South East Asian countries. 2. Also. MDF boards are imported from Europe. the supply of wood would be constrained and would not be able to keep pace with the increase in demand of Furniture.

9% Ha aryana. Human R Resource and skill requirem e l ments in F Furnishin industr ng ry 2. .2.Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry affordab and cater to the entry level segm ble r y ments. g ve Therefor they do no have the a re ot ability to abso the latest technology and work w manual and small orb t with a tools. bution of employm ment is show in the fol wn llowing figu Tamil Nadu. 23% Uttar adesh. 16% Pra Andhra Pradesh. the Furniture ma anufacturing do not hav the requisite scale. the production and des sign personn would nel need to p possess the r requisite kno owledge to w work with these materials. N Pradesh and Haryana acc count for nearly 50% of the em mployment in the Furnish n hing industry y. rs e e ic 2. urers cum re etailers woul require pe ld eople with k knowledge of various f Furnitur categories. Hence. Level of technology f As ment tioned earlie most of t units in F er. 4 Kerala. IMaCS Analysis : Page 33 of 50 e . IMa Analysis aCS 9 Source: ASI. 16 6% Tamil Nadu. Ove erview of Em mployment in Furnish t hing industr ry The Fur rnishing man nufacturing industry em mploys 8-9 Lakh people. Hence Manufactu e. Th level of te he echnology is expected to go up in line with cons s o solidation in the industry and the n y operator have to be imparted the knowledge of automati tools. 10% Source: Annual Survey of Industry. Figure 17 State wise employment in Furnitur industry 7: t re 4% Rajasthan. 7% Others. Maharash htra.9 The state wise distrib L . Focus on solution se n elling The reta ailers would have to fo d ocus on offe ering comple solutions for office and home Furniture ete s F requirem ments.1. Uttar P ure. 7% P Gujar 8% rat. re .2.

etc. Th home furn he nishing prod ducts use of erials such as cotton. Most of the furnishi articles s f ing such as curta ains. Figur 19: Produ re uction proces in Furnishing sses Cutting g Stichin ng Stuffin ng Finishi ing Page 34 of 50 e .Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry 2. stuffing .2.2. after the fabric manu and finis shing to mak the requisi furnishing article. ke ite g The vari ious activitie involved in furnishing manufacturi are shown in the follo es n ing n owing figure. silk and fabric made of sy k c ynthetic fibre and inclu es udes both variety o raw mate knitted a woven fa and abrics. bed she eets. hav relatively lesser value addition ve e ufacturing an processin stage. The processed f nd ng e fabric underg goes cutting. Val chain an core pro lue nd ocesses Figur 18: Value Chain of Fu re urnishing in ndustry The Furnishing ind dustry is a p part of the textile value chain.

Finishing Finishing involves the following operation: Removal of excess thread Washing Page 35 of 50 . The stuffing material is added to the fabric skeleton and compressed. cotton or other stuffing materials are used. Markings are made on the spread fabric which is then cut/chopped in the cutting machine. and sewing machines are used for stitching the furnishing item. Seams are categorised into 8 classes and designated according to the types and minimum number of components within the seam. Wastage reduction is a key consideration during this step.Human Resource and Skill Requirements in Furniture & Furnishing Industry Cutting The fabric is cut as per the defined pattern.types. Stitch classification is based on the structure of the stitch and method of interlacing. 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. 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. This is followed by stitching to close/seal the furnishing article. Stitching A number of stitch and seam. Assembling/Stuffing This step is required in case of furnishing articles where foam.

shoe bags. door curtains and fabric blinds Bedding Bed linen Table Linen Bath Linen Others Mattresses and pillows Sheets. drapes. pillowcases. The value chain of the Furnishing industry varies depending on the product. plaids. curtain material. curtains. duvets and quilts tablecloths. covers for clothes and/or Furniture. laundry bags. 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 Retailer Mattress  manufacturer • Mattress Dealer • Bed  manufacturer/reta iler End customer Page 36 of 50 .Human Resource and Skill Requirements in Furniture & Furnishing Industry Pressing/ Ironing Folding. fabric place mats/settings Towels & Washcloths Shopping bags. flags. blankets. As mentioned above. table napkins. the various product categories in furnishings include: Table 10: Product categories in Furnishing Product Category Furnishing fabrics Products Upholstery.

ude . Administrati and Desig etc. ion. alysis *Other F Functions inclu Accounts. Tab 11: Distribution of H ble Human Resou urce across functions in Furnishing manufacturing f g Functions F Production P Sourcing/Pro S ocurement Sales/Mercha S andising Other functio O ons* Source: I Industry input IMaCS ana ts. Also.2.3. A large propo ng ortion of the human reso ource (about 80%) peopl are engage in the le ed producti function. mall o xplicit demar rcation of fu unctions for sourcing. s sales etc c. gn Per rcentage sha are 75% %-80% 2% %-3% 3% %-5% 5% %-10% Page 37 of 50 e .Human R Resource and Skill Requirem ments in Furn niture & Furni ishing Industry ry Figure 2 Manufa 21: acturing process of coir M Mattress Coconut coir rope and l latex Untwistin the ng coir r Shee eting La atex appli ication Pressin ng Vulcani izing (hot ov ven) Trimm ming to require size ed Addi ition of fo oam Stitching and finishin ng 2. the sm units do not have ex ion . Pr rofile of Hu uman resour in Furn rce nishing indu ustry The dist tribution of human resource across functions in Furniture m n manufacturin is depicte in the ng ed followin figure.

Page 38 of 50 . is shown in the following figure. which is the dominant activity in the furnishing manufacturing. The education-wise distribution of workforce in Furniture manufacturing segment is provided in the figure below: Table 12: Educational Profile of the workforce in Furnishing Manufacturing Educational Level Engineers Diploma or equivalent certification by other agencies ITI and other vocational courses/Certificates Other graduates CA/MBA/etc. IMaCS analysis Percentage share 3%-5% 8%-10% 2%-3% 85%-90% Profile of people employed The typical profile of people employed in production function.Human Resource and Skill Requirements in Furniture & Furnishing Industry In case of unorganised and small scale units the percentage of the Shop floor/Operators/ Workers/Helpers can be as high as 95%. 12th/10th standard/Minimally Educated Source: Industry inputs.

) Knowledge of various types of fabric defects such as breakage of threads. Page 39 of 50 .2. dye requirements) and stuffing material (cotton.Human Resource and Skill Requirements in Furniture & Furnishing Industry Figure 22: Profile of people employed Engineer / 5-10 years experience Manager Engineer / Diploma/Minimally educated with 5-10 years experience Line/Shift superisor Line/Shift superisor ITI/Diploma/ ATDC Pass out /Minimally educated with 3-5 years experience Supervisor Supervisor Supervisor Minimally Educated Opertator Opertator Operator Source: Industry inputs. missing Purchase Manager threads. IMaCS analysis 2. Skill requirements and skill gaps Table 13: Skill requirements and gaps in Furnishing industry Function Level Skills Required Skill Gaps Knowledge of various types of fabrics (type of material. Negotiation and communication skills. fibrefill. kapok. count/picks. stains. Quality In-depth knowledge of the various types of fabric and quality parameters. patches and shade variation etc. foam.4.

The furnishings market is very cost competitive and hence minimising the raw material cost is important for furnishing manufacturers.Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Skills Required of the fabric is important as any defects at this stage Skill Gaps Procurement would affect the quality of the final product. Liaison with the fabric manufacturers and fabric processors. Ability to calculate the amount of requisite quality Purchase associate/ executive fabric and stuffing material required based on the order size and likely wastage. This is required for companies which source the fabric and do the processing through other processing units. Page 40 of 50 . Knowledge of various types of fabric defects and other quality parameters. Negotiation and communication skills for negotiating pricing and delivery terms with the fabric manufacturers. Awareness of the latest price trends in the fabric market. Insufficient knowledge of various types of fabric defects and other quality parameters.

Ability to handle multiple accounts/customers. Time management skills to Understanding of various production activities. purchase. Ability to work closely with other functions such as production. Understanding of buyer requirements of design and quality. Knowledge of languages is limited to English. Basic computer skills. Lack of soft skills for interacting with buyers in the international market. Knowledge of foreign languages such as French for Merchandising/ Sales better co-ordination with the buyer.Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Skills Required Skill Gaps Understanding of various production activities as the merchandiser is the interface between the buyer and the Senior Merchandiser/ Sales Manager company Negotiation and communication skills. Inadequate understanding of various factors affecting costing. Thorough understanding of costing. etc. These skills assume more significance for export oriented units. Junior Merchandiser/ Merchandising executive/ Sales Executive Understanding of various production activities. Page 41 of 50 . Should be able to communicate the product offerings through emails.

Should be aware of the colours. and Quality Control (this is because a large number of managers have been elevated by experience Page 42 of 50 . Design Designer The designer should be able to understand the impact of stuffing material on the final appearance of the furnishing article. Knowledge of Styling. Pattern Making. Basics of Costing. Fabric Study.Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Skills Required handle multiple orders at the same time. 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. contours which are in vogue. Understanding of buyer requirements is inadequate which leads to number of iterations before the sample is accepted. work study. Basic computer skills Skill Gaps Design and develop furnishing designs according to buyer requirements. Knowledge of latest fashion trends in the international markets is limited In-depth Knowledge of production process and inspection methods Process improvement skills Production Manager waste control. Modify existing designs to suit the current trends in the market. Elements of Design. Keep abreast with the latest fashion trends in the key markets.

Ability to provide on the job training to the new recruits Man management skills to manage the shop floor. Production process improvement. Man management skills to manage shop floor workers who are mostly minimally educated. Lack of knowledge of various types of sewing machines Lack of soft skills to manage the shop floor people. Knowledge of Hindi/other vernacular languages is a must to interact with the shop floor workers. Page 43 of 50 . Knowledge of Hindi/other vernacular languages is a must to interact with the shop floor workers. Awareness of quality requirements across various stages of production. Knowledge of production processes such as cutting. stitching and Line Supervisor/ Floor supervisor inspection methods Knowledge of different type of fabrics and stuffing materials. Cost reduction through above mentioned measures aids in improving profitability.Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Skills Required have a dedicated R&D for Skill Gaps rather than by formal training).. stuffing.

Knowledge of machines used for cutting. stitching on different shapes. seaming Operator components together to the design specifications. punctuality and regular attendance at workplace. Discipline at shop floor. sewing etc. Knowledge of maintenance requirements of various machines and tools. Even Quality control/ Assurance Manager small quality issues can lead to cancellation of order. Knowledge of international quality standards is a significant gap.Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Skills Required Skill Gaps Good machine control. Page 44 of 50 . Understanding of the customer requirements by interacting with the merchandiser. Knowledge of threading of sewing machine. Knowledge of cause effect relationships of the various defects. Good eye sight and hand-eye co-ordination Lack of proper knowledge of sewing machine operations and different types of seams and stitches Ability to work across different machines is missing Quality requirements are all the more important for companies focussing on international markets. Knowledge of in line and final quality testing procedures. Quality Knowledge of international standards is desirable.

However. Should be able to understand the various quality parameters.2. very few of the training initiatives are targeted at the shop floor level. inconsistent filling. Furnishing industry comes under the purview of Contract Labour Act. Skill Gaps 2. design is not a focus area for the furnishing companies..Human Resource and Skill Requirements in Furniture & Furnishing Industry Function Level Quality control Executive Skills Required Must be able to understand and prevent defects such as loose threads.000 workers. Change in the Page 45 of 50 .2. The exporters find it difficult to manage the seasonal and order based volatility in demand on account of this. Currently. stains. Emerging trends in skill requirements The availability of merchandising and designing skills would be crucial for increasing share in export markets. However. inconsistent stuffing etc. tapping the potential in new markets and catering to the luxury /high end of the domestic market.6. courses are available which impart training/education in textiles. Current Training & Education Infrastructure There are very few courses which exclusively cater to the requirements of the Furnishing industry. 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. the students passing out of these courses are mostly absorbed in the garmenting sector.e. Also. Furnishing retail would see increased penetration of organised retail and the focus would be on selling complete solutions i. 1970 which prohibits contract labour for the work that is perennial in nature.5. especially the units which are focussed on export markets. Currently. selling multiple and related furnishing articles under one roof. 2. The industry is likely to get increasingly consolidated in terms of scaling up of units.

500 3. Figure 23: Projected Size of Furniture Industry (Rs. More flexible labour regulations will positively affect the industry. leading to an incremental employment generation of about 0.1.000 1.3 million persons by 2022.026 1.500 1.000 594 500 2008 Source: IMaCS analysis 2012 2018 2022 3. Projected Size and Human Resource Requirement for Furniture Industry The size of the Furniture industry is expected to grow from Rs. billion) 3.9 million persons.Human Resource and Skill Requirements in Furniture & Furnishing Industry current regulations can lead to opening up of more employment opportunities. the current regulations prohibit women from being employed in night shifts.271 Incremental 892 380 10 Our overall approach to macro-economic modeling and forecasting is explained in a separate annexure Page 46 of 50 .200 billion by 2022.500 2.000 2. 594 billion currently to about Rs. Projected Size and Human Resource Requirement 2.127 This industry would employ about 1.223 13% 2. Table 14: Human resource requirement in Furniture Industry (in ‘000s) 2008 Furniture Source: IMaCS analysis 2012 571 2018 963 2022 1. 3. The scheme of integrated textile parks and various SEZs would also affect the availability of labour. 2.3.3. Also. growing at a CAGR of 13%10.

1. This industry is likely to result in the creation of 2.602 Incremental 2.36.728 2022 3.3. 2.618 2018 2.526 2. Table 17: Function-wise incremental human resource requirement (in ‘000s) Sales and others (merchandising) Procurement Production Others (Purchase. 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.Human Resource and Skill Requirements in Furniture & Furnishing Industry Table 15: Function-wise distribution of incremental human resource requirement (in ‘000s) Function Incremental human resource requirement (in ‘000s) 9 27 310 233 233 36 45 892 Designing Sourcing Production Carpenters Finishing and other assembly line workers Others (helpers) Sales Admin and other support Total Source: IMaCS analysis The requirement for the skilled workforce consisting of carpenters and other operators engaged in finishing of furniture would constitute 0. logistics.147 11 Our overall approach to macro-economic modeling and forecasting is explained in a separate annexure Page 47 of 50 . Table 16: Incremental human resource requirement in the Furnishing industry (in ‘000s) 2008 Furnishings 1.5 million additional jobs till 2022.526 The profile of persons to be engaged in terms of function-wise and education-wise details is given below.075 Source: IMaCS analysis 2012 1. admin) 177 Furnishing industry 126 Incremental human resource requirement Source: IMaCS analysis 76 2.000 crore in revenue by 202211.5 million persons.2.

captures where the Furniture and Furnishing Industry stands relatively in terms of skills (a function of activity.147 Graduate ITI 12th Standard Source: IMaCS analysis 2. stitching and sewing operations in the Furniture and Furnishing Industry. educational requirements. skills of supervision) Skill Level 1 (skills which can be acquired with a short/modular and focussed intervention and thereby enhancing employability of those with minimal education) 80% Source: Industry inputs. in summary. knowledge of complex operations and machinery. and amount of ‘preparatory’ time required to inculcate a specific skill) as compared to all other industries.3. have the highest incremental requirement of human resource. ‘Skill Levels 1 and 2’.3.Human Resource and Skill Requirements in Furniture & Furnishing Industry Table 18:Education-wise incremental human resource requirement (in ‘000s) Engineers and Diploma Furnishing industry 101 Incremental human resource requirement 2.526 76 202 2. Focus areas where skill building is required Given that the industry would required a varied profile of skill sets. IMaCS analysis The skill pyramid. This indicates the requirement for persons trained in carpentry. Page 48 of 50 . Figure 24: Skill Pyramid for the Furniture and Furnishing Industry 1% Skill Level 4 (skills which are highly specialised involving research and design) 7% 12% Skill Level 3 (skills which require long drawn preparation as demonstrated by acquisition of degrees. As can be observed. and involve highly technical or i l i ) Skill Level 2 (skills which require technical training inputs. 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.

stuffing. threading Incremental human resource requirement (in ‘000s) 310 233 2.691 Furniture Furnishings Total Source: IMaCS analysis The total requirement of human resource across the above areas where skill building is required is about 2.) Stitching.7 million persons till 2022.Human Resource and Skill Requirements in Furniture & Furnishing Industry Table 19: Focus areas where skill building is required (human resource requirement in ‘000s) Sector Areas where skill building is required Carpenters Operators (finishing. sewing. Page 49 of 50 . etc.147 2.

Prabhadevi Mumbai – 400 025 Tel: 91 22 3047 0047. The Education and Skills practice at IMaCS focusses on identifying skill gaps. build quantitative and financial models to project future performance and identify imperatives. Extensive and organised database on several sectors. backed by the following capabilities: • • • • • • • Deep understanding of policy formulation. Raghuttama Rao Managing Director IMaCS 4th floor.in M. R. IMaCS has completed over 950 consulting assignments and has worked in over 30 countries across the globe. Anna Salai.rao@imacs. Ability to identify the various types of risks and suggest appropriate strategies to mitigate the same. Insight into different programmes and organisational processes. Nandanam. It has an established track record of over 15 years in consulting across various sectors and countries. Knowledge of key factors of success in different projects and programmes. Ability to research emerging trends in the economy. Chennai – 600 035 Tel: 91 44 2434 0043. design and implementation of education and skill development interventions for government and private sector. Fax: 91 44 2434 3663 Email: sairam.m@imacs.in Page 50 of 50 . mapping future skill requirements. Sairam Head – Process Consulting IMaCS 5th floor.Human Resource and Skill Requirements in Furniture & Furnishing Industry This report has been prepared by ICRA Management Consulting Services Limited (IMaCS). and formulating strategies to address them. Through the process of carrying out several assignments over the last decade and half. Fax: 91 22 3047 0081 Email: raghuttama. as well as in specific sectors. Ability to carry out economic analysis. Electric Mansion Appasaheb Marathe Marg. IMaCS has accumulated considerable analytical and consulting expertise. Karumuttu Centre 634. Our service offerings encompass diagnosis. IMaCS is a multi-line management and development consulting firm headquartered in India.

org www.org . (Qutab Hotel) Shaheed Jeet Singh Marg New Delhi 11 0 016 Tel : 011 46 56 0414 Fax : 011 4656 0417 Email : nsdc@nsdcindia. Clarion Collection.nsdcindia.National Skill Development Corporation D-4.

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