Havells India said that the initial investment would be $50 million, which after around three years will go up to $100 million
Electrical goods maker Havells India said it, along with a Chinese partner will invest up to $100 million (nearly Rs530 crore) in the next three years to set up a manufacturing facility at Jiangsu province in China.
The new facility will come up under a 50:50 joint venture, Jiangsu Havells Sylvania Lighting Co Ltd, with China’s Shanghai Yaming Lighting Co. "The initial investment would be $50 million, which after around three years will go up to $100 million," Havells joint managing director Anil Gupta told reporters.
The plant will start initial commercial production in April 2012 and will have full swing output by November next year, he added. The JV firm will produce lighting products like HID lamps, LEDs, CFLs and lighting fixtures, he added.
Initially the company plans to export products wherever the Sylvania brand is sold currently and the later would also cater to the Chinese market, Gupta said.
At present Havells sells the Sylvania brand, which it had acquired in 2007, mainly in Europe and Latin America. It has also been gradually expanding in West Asia and Africa. The JV expects revenues of $30 million in the first year itself and $100 million in the next three years, he said.
"Though we had presence in China in R&D space, the need for a manufacturing base was always there," Gupta said. In India the company has eight facilities located in Rajasthan, Uttarakhand, Uttar Pradesh, Himachal Pradesh and Haryana.
On Monday, Havells closed at Rs397.95 per share on the Bombay Stock Exchange, 3.46% up from the previous close.
Hiring in R&D is on an upward trajectory and is expected to increase by 15%-20% in 2012
As global companies are shifting their research and development base to India to become cost effective and raising their R&D spend, experts have said that hiring in the segment will grow by up to 20% over last year.
“Total global spending on R&D is anticipated to increase 3.6%. With this, the momentum in the hiring has gone up. With India becoming a destination of choice due to its cost competitiveness, hiring by multinational companies is at an all-time high. There is a talent war for engineers and technical professionals,” Elixir consulting executive director Kanika Vaswani told PTI.
Auto hubs: The country is an emerging destination for auto R&D and companies such as Renault-Nissan, Maruti Suzuki, Honda have set up their centres from 2011 and this year, this not only gave rise to hiring but also led to attrition in the established R&D companies due to these new entrants, she pointed out. Besides, pharmaceuticals and auto R&D that has been hiring steadily, other segments like defence have recently increased hiring, recruitment has recently seen a spurt and is rapidly growing hiring in the defence sector.
Talking about pay packages, she said, in R&D hiring, pharma and defence are the better-paying sectors. Echoing the view, Executive Search Firm Symbiosis Management Consultants CEO Vinay Grover said R&D is witnessing large investments not only from MNCs but also from domestic players.
“India, positioned as a land with plenty of talent pool at a low cost, has gained the attention of MNCs. In domestic companies, pharma and automobile have realised that in their ambition to globalise their operations, they have no recourse but to spend on R&D,” he said.
Despite the lull in job opportunities, the hiring in R&D is on an upward trajectory and is expected to increase by 15%-20% in 2012, he added. This positive trend in R&D hiring started picking up in 2010 and peaked in 2011, and is expected to continue through 2012, he said.
“The hiring is on at all levels—junior, middle and senior. There are lot of positions available at level of technology manager and program manager that can go to the level of director,” he said adding that IT and health care are among the highest paying sectors.
Planman consulting director Deepak Kaistha said organisations in India are realising the value of a strong internal research centre to back them with ideas that could be turned into reality. “Hiring has touched its peak in FY11 and is expected to grow another 20% next year,” he added.
Many organisations are also providing funds to the upcoming PhD students and offer such programmes for employees in collaboration with top-notch institutes to attract talent, he said. FMCG sectors are showing great potential and plan to hire more R&D techies next year, he said adding that Japanese firms aim to work closely with Indian Universities and collaborate with companies to make hiring a smoother process.
When it comes to salaries, he said, IT and FMCG sectors offer the highest packages and R&D hiring is mainly happening at a higher grade levels. Executive search firm GlobalHunt director Sunil Goel said that for the last few years, there has been lot of focus on real R&D and companies are trying to innovate world class product and technologies. He, however, said that market conditions may not be that great in 2012 and hiring in the sector will remain steady.
As per Hay Group, India may see low double-digit salary hikes of as much as 12% across various levels in 2012
The Indian job market is expected to see slower hiring activity, but double-digit salary hikes next year as employers are embracing a “cautiously optimistic” approach amid the economic uncertainty.
Surviving overall global sluggishness replete with large-scale layoffs in different sectors, the domestic employment scenario has gathered some steam towards the end of 2011, as reflected in the relatively better hiring plans of companies.
Experts, as well as different surveys, are projecting a slower pace of hiring activities in the country in the New Year, but said India would still fare better than its global peers. However, apprehensions are high that the economic slowdown and declining industrial output could seriously affect the hiring plans of corporates, they said.
“Although there will be a variation in employment generation outlook across sectors, new jobs will continue to be added, but at a slower pace,” global HR consultancy Ma Foi Randstad managing director and CEO, E Balaji, told PTI.
“The global economic uncertainty has impacted the Indian market, in spite of the positive sentiments displayed at the beginning of 2011,” he noted. In the coming months, recruitment is expected to grow in sectors such as retail, healthcare and IT & ITeS, defence, hospitality, consumer durable and nuclear energy. Global human resources major Hay Group’s India managing director, Gaurav Lahiri, believes that India, to some extent, is insulated from layoffs happening in the developed world.
“The Indian employment market is cautiously optimistic,” he said.
Salary hikes: As per Hay Group, India may see low double-digit salary hikes of as much as 12% across various levels in 2012. This would be slightly better than the average pay increase of about 11% in 2011. However, HR experts tracking various sectors feel there will be a slowdown in recruitment activity in the coming months.
Though most companies are unlikely to trim their headcount, as has been the case in many other countries, new hiring could be put on hold, at least in some segments.
Job offers: Staffing solutions company TeamLease Services’ senior vice-president and co-founder, Sangeeta Lala, said that new job creation over the last six months has declined by 15% from the year-ago levels, mainly in sales and customer services.
The uncertain economic environment and a perceived policy paralysis have also dampened the consumer sentiment and are affecting new job offers. The sectors, where new job creation, has been adversely affected include FMCG, sales, customer service operations, insurance and telecom.