New Delhi: TVS Motor Co. Ltd is tying up with the National Skill Development Corp. (NSDC) to create a labour pool to meet demand for trained personnel, and power the next phase of growth for the Chennai-based two-wheeler firm and the rest of the automobile industry.
“We have been in talks with NSDC for quite sometime,” said TVS chairman Venu Srinivasan. “The idea is to develop a workforce that could play a significant role in the next phase of growth of the company.”
The auto and auto ancillary segment will face a shortage of skilled personnel to the tune of 35 million by 2022, says a study by NSDC. Even now, the industry is facing a shortage of about 300,000 skilled workers, according to a survey by consulting firm KPMG.
“India has become the focus of all major automobile companies,” Srinivasan said. “With this, the demand for motorcycles and cars will increase. We need to be ready to meet such kind of demand.”
The Indian auto industry’s annual sales rose 20% to Rs3.27 trillion in the 12 months to 31 March from the year before, according to the Society of Indian Automobile Manufacturers (Siam), an industry lobby.
Sales are expected to rise fourfold by 2020, says Siam, although the industry is presently battling a sales downturn as the pace of economic growth slows and increased borrowing costs and fuel prices deter buyers.
Srinivasan is convinced the Indian automobile industry will grow faster.
Last week, TVS Motor reported net profit of Rs76.5 crore for the quarter ended 30 September, a 40% increase from a year earlier. Its two-wheeler sales rose 16% to 597,000 units.
NSDC is a for-profit entity formed by the finance ministry in association with the Confederation of Indian Industry, the National Association of Software and Services Companies and the Retailers Association of India, among others.
“Our board has approved the TVS proposal and a formal signing will happen soon,” said a spokesperson for NSDC.
TVS Motor has a unit dedicated to training workers with the aim of creating a skilled labour pool for the company and the automobile industry. The company will set up up seven training centres in Tamil Nadu, Karnataka and Uttarakhand states, and intends to train people for other industries such as financial services, retail, construction and electronics appliances.
Corporate involvement in training workers for the auto industry will help create a labour pool that’s customized for meeting specific company needs, says Pooja Gianchandani, director of skill development at industry lobby Federation of Indian Chambers of Commerce and Industry.
“Every company has it own system and machinery and workers need to be trained on that,” she said. “Corporates entering the training market will bridge this gap by creating a customized talent pool.”