Mets december wave4

K. Pandia RajanMD & CEO – Ma Foi Randstad

December 2010

Wave 4Wave 4

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The organized sector in India has created739,064 jobs in Jan – Sep 2010

and 394, 700 jobs are getting created

in Oct-Dec quarter

A total of 1,133,764 jobs Jan - Dec 2010

Job Creation – Jan to December 2010

3

Energy

Trade including CRS

Manufacturing - Machinery & Equipments

Transport, Storage & Communication

Pharma

BFSI

Non-machinery Manufacturing

Education, Training & Consultancy

Media & Entertainment

IT & ITeS

Real Estate & Construction

Hospitality

Health care

0 50,000 100,000 150,000 200,000 250,000 300,000

Jan to Mar 2010

Apr to Jun 2010

July to Sept 2010

Oct to Dec 2010

260,052

165,700

150,512

116,700

87,100

83,400

69,000

57,500

41,600

37,400

24,600

20,100

20,100

Job Creation – Jan to December 2010

4

SectorsDec 2009

Jan to Mar 2010

Apr to Jun2010

July to Sept

2010

Oct to Dec2010

Total in 2010

Healthcare 3,123,000 52,752 68,800 68,500 70,000 260,052

Hospitality 5,951,000 21,500 41,400 48,300 54,500 165,700

Real Estate & Construction 730,000 9,012 36,000 33,400 72,100 150,512

IT & ITeS 1,793,000 7,200 28,100 38,300 43,100 116,700

Media & Entertainment 1,272,000 10,300 18,600 26,200 32,000 87,100

Edu., Training & Consultancy 9,715,000 16,200 18,000 20,400 28,800 83,400


4,424,000 9,300 13,200 21,700 24,800 69,000

BFSI 852,000 4,400 12,300 18,500 22,300 57,500

Pharma 243,000 5,900 7,000 13,900 14,800 41,600

Transport, Storage & Comm. 2,638,000 7,100 7,900 11,700 10,700 37,400

Mfg - Machinery & Equipments

1,106,000 3,100 4,200 7,700 9,600 24,600

Trade including CRS 630,800 2,600 4,300 6,200 7,000 20,100

Energy 874,000 4,200 5,200 5,700 5,000 20,100

153,564 265,000 320,500 394,700 1,133,764

about this survey

• Ma Foi Randstad Employment Trends Survey (METS) is one of the largest and comprehensive study to predict employment trends and opportunities in the organised sector

• Survey is being conducted on annual basis since Nov 2004

• The survey was conducted among 660 companies across 13 industry segments in India

• Banking and Financial Services • Information Technology & Information Technology Enabled Services• Pharma• Healthcare• Trade including Consumer, Retail & Services• Energy• Transport, Storage & Communication• Real estate & Construction• Hospitality• Media and Entertainment• Mfg. of Non-machinery Products• Mfg. of Machinery & Equipments• Education, Training & Consulting

• These companies were queried about a) hiring in the first nine months of the year and b) hiring intentions over the next three months6

Top 5 job generators – across 2 quarters

7



IT & ITeS

Hospitality

Healthcare

26,200

33,400

38,300

48,300

68,500

July - September 2010


IT & ITeS

Hospitality

Healthcare


32,000

43,100

54,500

70,000

72,100

October - December 2010

Key Findings - Sector wiseTop Sectors

8

IT & ITeS


Hospitality

Healthcare

116,700

150,512

165,700

260,052

BFSI


Education, Training & Consultancy


57,500

69,000

83,400

87,100

Sectors creating 1 lakh + jobs

Sectors creating 50,000+ jobs

Key Findings – City wiseTop 3 Cities

9

Delhi & NCR

Mumbai

Chennai

10,000 30,000 50,000 70,000 90,000 110,000Delhi & NCR Mumbai Chennai

Jan to Mar 2010 17650 12750 5600

Apr to Jun 2010 18303 13022 5992

Jul to Sep 2010 33761.3647968817 42974.0424306808 27496.0185371604

Oct to Dec 2010 44182.7283509078 39059.9074701931 32087.1420934494

Other Cities Jan to Mar 2010 Apr to Jun 2010 Jul to Sep 2010 Oct to Dec 2010

Kolkatta 3,750 3,704 13,063 12,011

Bangalore 3,000 3,477 7,063 8,213

Hyderabad 2,800 3,104 8,345 6,310

Pune 2,300 2,598 6,401 7,912

Ahmedabad 1,540 1,650 3,542 3,433

Employment trendssector wise - BFSI

10

4,400

12,300

18,500

22,300

Jan to Mar 2010 Apr to Jun 2010July to Sept 2010 Oct to Dec 2010

Total Jobs : 57,500

Between July and December 2010, the BFSI sector is generating an additional employment to the tune of 40,800

• The positive sentiment in economic front continues to provide the stimulus for the banking sector significantly

• Overall, recruitment significantly higher

• Substantial growth of banking sector indicators

• Expected annual growth in Life Insurance and Health Insurance industry by 2013-14 to play big role

• The upturn of the capital markets aids the mobilization of resources necessary for new investments

• Fresh recruitments as result of expected 35% of banking staff retirement

“ huge growth opportunity in participation of Indians in Capital Market Investments from

the current rate of 2%”

Employment trendssector wise – IT & ITES

11

7,200

28,100

38,300

43,100


Total Jobs : 116,700

Between July and December 2010, the IT & ITES sector is generating an additional

employment to the tune of 81,300• Revival of job market in India after the global recession is to

do with quick come back of the IT/ITES sector - Labour and Employment Ministry

• Recovery process, especially in USA and UK has played a key role in strong recovery of the sector

• The September quarter results of India’s top four information technology (IT) outsourcing companies underscores the strong demand for IT services

• Increase in KPO business in recent months is also serving as a booster for the boom in the sector

• CEOs of top companies confident of adding more jobs

• Employing new entrants increased in the third quarter

“Inter-industry shifting of skilled workforce increases significantly as a result of growing

demand”

Employment trendssector wise - Pharma

12

5,900

7,000

13,900

14,800


Total Jobs : 41,600

Between July and December 2010, the Pharma sector is generating an additional employment to

the tune of 28,700

• India's pharmaceutical industry is now the third largest in terms of volume and ranks 14 in terms of value

• Increasing percentage of the higher-income group opens a potential US$ 8 billion market, for MNCs in the next five years – E&Y Report

• The domestic Pharma market is estimated to touch US$ 20 billion by 2015 – E&Y report

• The pharmaceuticals industry in India will grow over 100 per cent during the next two years – AIOCD [All India Organisation of Chemists and Druggists]

• The pharmaceutical industry is currently growing at the rate of 12 per cent, and the growth will further accelerate

• Great potential for innovative R&D in the country, where the investment is still inadequate

• US $40 billion worth of drugs in the US and US $25 billion worth of drugs in Europe going off patent is likely to create new opportunities

“new licensing deals with MNCs for NCE [New

Chemical Entities] & NDDS [New Drug Delivery Systems] opens new doors for Indian manufacturers”

Employment trendssector wise – Healthcare

13

52,752

68,800 68,500 70,000



Between July and December 2010, the Healthcare sector is generating an additional

employment to the tune of 70,000• Healthcare sector emerges as most progressive in the

country with an expected GDP spend of 8 per cent by 2012

• Healthcare sector is expected to be a US$ 280 billion industry by 2020

• India will require another 1.75 million beds by the end of 2025 and Corporate India is therefore, leveraging on this business potential – E&Y report

• The government's focus on making healthcare a priority sector, increasing penetration of health insurance, rising per capita income and increased incidence of lifestyle related diseases along with a large population base will remain key drivers of this sector

• As a consequence , Healthcare will remain one of the major employment generating sector in the country

“spending on health is expected to grow upto 14% per annum”

Employment trendssector wise – Trade including Consumer, Retail & Services

14

2,600

4,300

6,200

7,000


Total Jobs : 20,100

Between July and December 2010, the Trade, Consumer and Retail Services sector is

generating an additional employment to the tune of 13,200

• After being severely hit by recession and suffering a huge setback in both domestic and international markets, the sector has started looking upward again

• Global economic recovery in the recent past has been boosting the export sector significantly

• A strong upward looking economy, coupled with increase in income level and the festive season played an important role

• The increasing middle and upper class consumer base will increase the potential in India's tier II and III cities

• The India Retail Report for the third-quarter of 2010, forecasts that the total retail sales will grow from US$ 353 billion in 2010 to US$ 543.2 billion by 2014

• Trade facilitation, lowering the restriction and supply side constraints including infrastructure can play a key role in increasing FDI inflow into this sector

“greater availability of personal credit and growing vehicle population will contribute to growing annual retail sales of

11.4%”

Employment trendssector wise – Energy

15

4,200

5,200

5,700

5,000


Total Jobs : 20,100

Between July and December 2010, the Energy sector is generating an additional employment

to the tune of 10,700• Energy sector did not perform as expected during the last

quarter, though is expected to pick up in the current quarter

• Amongst various sub-sectors, coal has shown a larger decline as compared to the other sectors

• Any further step on part of the government towards regulatory reforms for the sector will allow the sector to grow in its full potential

“sanction of new power plants in different States and corporate interest in “green energy” will enhance

activity level”

Employment trendssector wise – Transport, Storage & Communication

16

7,100

7,900

11,700

10,700


Total Jobs : 37,400

Between July and December 2010, Transport, Storage and Communication sector is

generating an additional employment to the tune of 22,400

• Telecom still remains one of the India’s fastest growing sectors and continues to generate new employment opportunities

• Transport sector has shown significant improvement in hiring scenario compared to the previous quarters

• Goods traffic by railways and cargo handled by ports have shown poor growth for both, 2.3% and 0.8% respectively in July to September 2010

• The country is still facing constraints in allocating sufficient capital to transport infrastructure

• A strong GDP growth, along with increased manufacturing and trade related activities to provide an opportunity to a larger traffic movement, both in passenger and cargo

“growth in production of commercial vehicles has led to job generation”

Employment trendssector wise – Real Estate & Construction

17

9,012

36,00033,400

72,100



Between July and December 2010, the Real Estate and Construction sector is generating an additional

employment to the tune of 105,000

• The sector was one of the most important contributors to the country’s employment base during July to September quarter, of which, the construction sector was the major contributor

• Residential segment witnessed a substantial activity in terms of new project launches and price appreciation. In previous quarters, affordable housing was the prime focus of the developers across regions

• In the last quarter, premium sectors have also been in demand, which has led to a confident real estate sector that is expected to grow further

• The growth in real estate in Tier-II and Tier-III cities is mainly due to increase in demand for organised realty and availability of land at affordable prices in these cities

• Infrastructure development in the country, including the activities in NCR region due to Commonwealth Games 2010 has also contributed

“booming hospitality and retail sectors, clubbed with increased demand for office space has led to growth in the sector resulting in significant increase in number of

jobs”

Employment trendssector wise - Hospitality

18

21,500

41,400

48,300

54,500



Between July and December 2010, the Hospitality sector is generating an additional employment to the

tune of 102,800

• Hospitality sector has grown tremendously during the last six months

• According to DIPP, FDI inflows were pegged at US$ 2.17 billion from April 2010 to September 2010 in the hotel sector in India

• India’s hotel pipeline is the second largest in the Asia-Pacific region

• Indian hospitality industry is projected to grow at a rate of 8.8 per cent by 2016, placing India as the second-fastest growing tourism market in the world

• Initiatives like massive investment in hotel infrastructure and open-sky policies made by the government are all aimed at propelling growth

• Foreign Tourist Arrivals in India during the period January-October 2010 were at 4.32 million at a growth rate of 9.9 per cent

• Foreign Exchange Earnings from tourism has also increased significantly at US$ 1.18 billion in October 2010

• Government has allowed 100 per cent foreign investment under the “automatic route” in the hotel and tourism related industry. - According to the Consolidated FDI Policy released by DIPP, Ministry of Commerce and Industry

“a large number of approvals for new hotels in the past months have boosted the prospects further and this is

likely to result in substantial job creation in the near future”

Employment trendssector wise – Media & Entertainment

19

10,300

18,600

26,200

32,000


Total Jobs : 87,100

Between July and December 2010, the Media and Entertainment sector is generating an

additional employment to the tune of 58,200• The media sector has also grown significantly during the

second quarter and is expected to grow at a higher scale

• Radio is expected to grow at 12.2 per cent over 2010-14

• Internet is tipped to grow by 20.1 per cent over the next five years

• Gaming is another component which is expected to grow at 25.2 per cent in the next five years.

• Television advertising is expected to grow 20% in 2011 and print advertising by 7%

• Large scale opportunities lie in those sub-areas of digital distribution platforms for TV such as DTH, digital music platforms, digital media advertising (internet, mobile and digital signage) and global cinema content

“demographic and economic factors are fuelling the rapid growth in Indian entertainment and media sector leading

to growth in employment figures”

Employment trendssector wise – Non-machinery Manufacturing

20

9,300

13,200

21,700

24,800


Total Jobs : 69,000

Between July and December 2010, the Non-machinery Manufacturing sector is generating

an additional employment to the tune of 46,500• A positive growth momentum of the second quarter

continued for the third quarter and is expected to grow further in the coming months

• Textiles sector, especially Other Fibre Textiles and Cotton Textiles, have grown at a much higher rate during the last two quarters

• Output growth for Food Products was at about 13% during the second and third quarters of 2010

• Apart from these, Metal Products & Parts and Rubber, Plastic, Petroleum and Coal products subsectors have grown by 35.5% and 15.8% respectively

• An improvement in the export market has also acted as a booster for the sector

• Lower inflation rate can help this sector to grow further

“Textiles, Food Products, Metal Products, Rubber, Plastic, Petroleum are some of the sectors that have

contributed to job generation”

Employment trendssector wise – Manufacturing of Machinery & Equipments

21

3,100

4,200

7,700

9,600


Total Jobs : 24,600

Between July and December 2010, the Manufacturing – Machinery and Equipments

sector is generating an additional employment to the tune of 17,300

• Index of Industrial productions (IIP) has shown significant increase in industrial activities for this sector

• The sector recorded a higher growth during the 3rd quarter of the year compared to the second quarter

• Machinery and Equipment (other than Transport Equipments sector) have grown by 26.3% during the first five months of the financial year as against 9.8% during the previous year

• The growth at this level for Capital goods sector shows strong fundamentals for investment in the country.

• Transport Equipments and Parts sector has also grown by 26.0% as against 9.4% during previous year

• The growth of consumer durables has been impressive at a level of 27%

“a combination of factors including the fiscal stimulus has played an important role in boosting

this sector”

Employment trendssector wise – Education, Training & Consultancy

22

16,200

18,000

20,400

28,800


Total Jobs : 83,400

Between July and December 2010, the Education, Training and Consulting sector is generating an additional employment to the

tune of 49,200• This sector continues to be one of the largest contributor to

the employment base of the country

• The continuous growing demand for training, research and consultancy is adding significant employment

• Adding new teachers at the school and college levels by various State governments has been another source of employment generation

• The stance of the government to double teaching infrastructure will encourage new investments from private players in the sector

• Recently the government of Andhra Pradesh has taken a decision to recruit more than 50,000 teachers to fill the vacancies in the government aided schools of the States. Initiatives like these will act as a great booster for the sector

“increase in demand for the private sector educational institutes will see this sector adding more number of jobs in

the coming years”

Jammu

Dehradun

New Delhi

Jaipur

Agra

Allahabad

Lucknow

Bhopal

Patna

Guawahati

Siliguri

Jamshedpuri

RanchiAhmedabad

RajgotBaroda

Gurgaon

Indore

Surat

NasikAurangabad

RaipurNagpur

Bhubaneswar

Pune

Hubli

Kolhapur

Bengalore

Hyderabad

VijayawadaWarangal

Kurnool

Vishakapatnam

Chennai

Pondicherry

Virudhanagar

HosurSalem

TrichyCoimbatore

Mysore

Mangalore

Goa

Madurai

TuticurinTrivandrum

Cochin

Calicut

Sri Lanka

Mumbai

LudhianaChandigarh

Shimla

Kakinada

Kolkata

• Grown to be the largest HR service provider in India

• Part of Randstad Holdings NV, a Fortune 450 company present in 44 countries

• Revenue grew to Rs. 7885 million (2009) as against Rs.7863 million (2008) reflecting a CAGR of 66% over the last 17 years

• Worked with over 250 Fortune 500 organizations

• 1,581 FTEs and over 60,000 on deputation

• 3,10,654 placed in 36 countries, incl. 1235 in GM and above levels

• Value / Process driven - ISO 9001:2008 Certification obtained from TUV

• 59 offices in 50 locations

Profile of Ma Foi Randstad

Profile of Randstad

24

• Randstad was founded in 1960 and is headquartered in Diemen, the Netherlands. Randstad Holding is listed on the NYSE, Euronext Amsterdam exchange, where options for stocks in Randstad are also traded

• Since acquiring Vedior in 2008, the Randstad Group is the second largest HR services provider in the world with top three positions in Argentina, Belgium & Luxembourg, Canada, Chile, France, Germany, Greece & Cyprus, India, Mexico, the Netherlands, Poland, Portugal, Spain, Switzerland and the UK, as well as major positions in Australia and the United States

• Randstad has over 25,500 employees working from 4,100 branches and in house locations in 44 countries around the world

• Randstad generated a revenue of € 12.4 billion in 2009

• We offer an extensive portfolio of HR services, from regular temporary staffing and permanent placement to on site consultants, seconded specialists, recruitment of middle and senior managers and a comprehensive range of specialized HR services

• Staffing• Inhouse services• Professionals• Search & Selection• HR Solutions

Randstad Global Presence

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Mets december wave4