Indian Steel industry, which is fourth largest in the world, is expected to grow at CAGR of 10-12% for next few years. Through its focus on infrastructure, construction, automobiles, transportation and industrial application steel industry plays a significant role in overall economic growth of the country. India has been among the top players in producing all forms of steel. India has a competitive advantage over its peers in terms of easy availability of low cost manpower and presence of abundant reserves.
The future prospects can be estimated by the fact that Indian steel companies have signed 222 Memorandum of Understanding (MoUs) with state governments for a capacity addition of 275.73 million tons (MT) by 2020. Indian government is also assisting private players in their Research & Development set ups.
According to Department of Industrial Policy and Promotion, Government of India, Power sector attracted foreign direct investment of $1.6 billion during April 2011- March 2012. It is ranked 6th among the leading sector in indian economy in terms of foreign investment. Power industry constitutes four segments namely, electricity generation, electric power transmission, electricity distribution, and electricity and electricity retailing.
The capital intensive power sector has shown a positive growth after a decline of almost 50% during the recessionary times. With growing demand and government’s pro industry policies, power sector is estimated to grow at a CAGR of 10-12% in next few years. In terms of electricity generation capacity India ranks fifth in the world.
With increased domestic production, rising prices and overall upward growth trend, Steel & Power sector is poised to hire new talents across country. In fact the hiring trend is positive in both government as well as private sector.
Indian Steel & Power industry is in middle of many changes. There has been an upsurge in domestic demand while import from china has been reduced significantly. This has lead companies to increase the production capacity. Reduction of imports from China has also resulted in increased domestic prices whereas price of raw material is softening. This overall trend has resulted in higher margins for many companies. Thus major players are trying to retain their existing talent pool while attracting new talents from open market.
This trend has also resulted in significant increase in lateral hiring. Since within a short span of time firms need people with specialized skills set, they are turning to experienced people in the open market. Lateral hiring is expected to increase at a CAGR of 7-8% for next few years.