52nd Annual General Meeting of Indian Paint Association

Excerpt: THE 52nd Annual General Meeting of the Indian Paint Association was held on 24 July 2015 at “Williamson Magor Hall” , Bengal Chamber of Commerce Building, Kolkata.

52nd Annual General Meeting of Indian Paint Association

THE 52nd Annual General Meeting of the Indian Paint Association was held on 24 July 2015 at “Williamson Magor Hall” , Bengal Chamber of Commerce Building, Kolkata.

Mr Jonathan Ledger, Chief Executive Officer, Proskills UK and The National Skills Academy Materials, Production & Supply was the special guest on the occasion and the Guest of Honour was Mr Ranjan Choudhury,principal- Investing and incentivizing, National Skill Development Corporation.

The dignitories lighting the lamp of knowledge

The event started with the lighting of the traditional lamp of light by the dignitaries in the dais.

Mr Jayakumar Krishnaswamy, President, IPA welcoming the attendees said the year gone by was an extremely satisfying one on several counts. For the country, it translated into a year of promise. For IPA and the industry, it was especially rewarding as we witnessed the introduction of policies and initiatives that present great opportunities for growth. He further continued and said: “And, on a personal note, it gave me a chance to lead IPA during these exciting days.

“If there is one phrase to define the year, it is 'a positive outlook'. It was this stand that business leaders across India took to move ahead. The country saw a significant change in its economy during 2014-15 with most of the macroeconomic indicators pointing to a phase of recovery. A GDP growth of 7.4 per cent was recorded, as compared to 6.9 per cent in the previous year, based on the changes made by the Government in the base year from 2004- 05 to 2011-12 and in the GDP reporting. According to the IMF World Economic Outlook released in April 2015, India has been ranked seventh globally in terms of GDP at current prices and is expected to emerge as the world's fastest growing major economy. Even though the global environment continued to remain soft with the uncertainties that engulfed a number of advanced and emerging economies, India is projected to grow in a range between 7.8 and 8.2 per cent during 2015-16. It is encouraging to note that the Government of India has been pursuing an investor-friendly FDI policy with FDI up to 100 per cent permitted under the automatic route in most sectors.

“The Central Government has also been focusing on large-scale campaigns such as Make In India, Swachh Bharat, Digital India, Smart Cities, Jan Dhan Yojana and Clean Energy. These initiatives have helped generate new opportunities for investment, both by the public and private sectors. Renewed action has been observed in segments such as roads and highways, ports and power, with the Government increasing expenditure on the infrastructure sector by Rs 70,000 crore. The reduction in corporate tax from 30 to 25 per cent will also help in boosting investments, thus creating new employment opportunities.

The IPA AGM in progress. L to R: Mr. Saughat M, Mr. Jalaj Dani, Mr. Jonathan Ledger, Mr. Jayakumar Krishnaswamy, Mr. Rajan Choudhury and Mr. Abhijeet

Mr. Jayakumar Krishnaswamy

“The growth pattern observed in the paint industry during 2014-15 was similar to the previous year, with the overall production of paints estimated at 3,300 million litres, registering a growth of around six per cent over 2013-14. In value terms, the industry grew by about 12 per cent over 2013-14 and is now approximately Rs. 35,120 crore. The contribution of decorative to industrial paints is estimated to be 73:27. Since the per capita consumption of paints in India is, at 2.65 kg, quite low in comparison to some of the developed economies around the world, it provides an immense growth opportunity for the industry.

“The rapid speed of urbanisation has prompted the Government to develop 100 Smart Cities across the country with each state having at least one. The Smart Cities, to be developed through private investment or the PPP mode, will certainly promote smart solutions for the efficient use of available assets, resources and infrastructure with the objective of enhancing the quality of urban living and providing a clean and sustainable environment. It is a foregone conclusion that the development of these cities will provide ample opportunities for growth in the realty sector. This augurs well for the cement, steel and paint sectors.

“The Make In India policy will depend to a large extent on the availability of a skilled, employable workforce. Unfortunately, this is estimated at only 2 per cent of the total workforce in India. As per the 2011 Census, India has 55 million potential workers between the age group of 18 to 29 years. The Government has set an ambitious target of providing training to 500 million of its youth by 2022, which is in line with the estimated demand for skilled manpower over the next decade. Keeping this in mind, the Government has launched a policy on skill development, which is expected to focus on the training of trainers, revising the existing curriculum, providing vocational training to casual workers and, most important, creating livelihood options.

“The paint industry in the country, owing to its staggering growth rate of 13 per cent CAGR over the last decade, has been facing a skills crunch, especially in the area of paint application. Since the paint sold in the market is not a finished product, the performance of the paint in terms of its functions of decoration and protection is, to a large extent, dependent on the painter or paint applicator. Customer satisfaction is based on the performance and the skill of the applicator, both with respect to his technical and soft skills. In addition to the applicators, which comprise the largest number of skilled workmen that affect the performance of the coating industry at the customer end, there are a number of other skills required in the manufacture, sales and distribution of the product through the retailers. Here, too, the industry has felt a skill shortage since the number of skilled employees in the entire value chain of the coatings industry accounts for fewer than three per cent of the total employment created by this industry. The requirement of skilled painters is estimated to increase from 1.7 million during 2013-14 to three million by 2023-24. Only a few academic institutions offer painting technology courses and these are often not in line with the needs of the industry. The largest requirement of painters is for decorative applications on buildings with more than 90 per cent for repainting activities that are not covered under any trade or vocational courses.

“The Association has felt for long that the sustenance of the growth momentum in the paint industry could only be achieved through proactive initiatives to address the skill gaps in the entire value chain, right from the raw materials stage to painting and after-sales service. I am happy to share that IPA's proposal to set up a dedicated paints and coatings skill council has been approved by the National Skill Development Corporation. The Association is working towards establishing this council as a Section 8 company and thereafter start its operations. The council will help create the standards required for all these skills, encourage and promote the setting up of the required training institutions/academies and, finally, ensure that those who are trained in these institutions meet industry requirements. Ladies and gentlemen, we have among us this afternoon Mr Ranjan Choudhury from NSDC and Mr Jonathan Ledger from Proskills UK. IPA has already signed an MoU with Proskills UK for sharing best practices with the paints and coatings skill council.

Mr. Jalaj Dani

“IPA Regional Committees have arranged various presentations and workshops during this eventful year. The Association has worked closely with Government departments to resolve several issues being faced by the paint industry. Some of these have proven to be successful; a few are still work-in- progress. The Eastern Regional Committee organised the 27th Indian Paint Conference during January in

Kolkata. Its theme was 'Innovate to Succeed – New Markets, New Technology, New Skills'. The Chief Guest was Dr Amit Mitra, Minister for Finance, Excise, Commerce & Industries, Public Enterprise , Industrial Reconstruction, Information Technology & Electronics, Government of West Bengal. Mr Kurush Grant, Executive Director, ITC Ltd, was the Guest of Honour. Mr Subir Bose, Ex Managing Director, Berger Paints India Ltd, was presented the coveted IPA Lifetime Achievement Award by Dr Mitra for his outstanding support and contribution to the growth and development of the paints and coatings industry in the country. The winners of the Technical Awards in the research and review categories were also felicitated at the event that highlighted the importance of innovation in our industry.

View of the audience

“India's future is being painted in vibrant colours and this change is evident across the globe. There is every reason to cheer as we, collectively, take steady steps towards realising our potential. I am grateful to you all for extending a supporting hand to IPA. I consider it an honour to have been its President for the past year. Here, I have seen vision being harmonised with action and integrity walking with passion. I believe that the Association will continue to assist the paint industry in the years to come“.

Mr Jonathan Ledger, Proskills UK gave a special speech on the occasion and said that Proskills Global is a part of the UK registered charity Prosills UK Group, which supports governments employers, trade and industry bodies to research, plan and implement vocational education systems at strategic and operational levels. Mr Ranjan Choudhury, from the National Skill Development Corporation spoke on the urgent need to skill India. NSDC is a first-of-its-kind Public Private Partnership (PPP) in India set up to facilitate the development and upgrading of the skills of the growing Indian workforce through skill training Awards in the research and review programmes. A large part of the categories were also felicitated at the organisation's efforts are directed at the event that highlighted the importance of private sector and towards developing innovation in our industry. the skills in the unorganised sector in India. NSDC supports skill development “India's future is being painted in efforts, especially in the unorganised vibrant colours and this change is sector in India by funding skill training evident across the globe. There is every and development programmes. It also reason to cheer as we, collectively, take engages in advocacy and training steady steps towards realising our programmes, in-depth research to potential. I am grateful to you all for discover skill gaps in the Indian extending a supporting hand to IPA. I workforce, and developing accreditation consider it an honour to have been its norms, he said. Mr Jalaj Dani, President for the past year. Here, I have Vice President IPA gave the vote of seen vision being harmonised with thanks.

The IPA team

The attentive audience

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