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Entrepreneurship Awareness Camp 4th -6th
September 2008 Organized by VITTBI
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Emerging Technology Business opportunities
- Openings in Engineering Sector

• By
• K.S.Krithivasan
• Additional General Manager / Engineering
• (Desalination Wind Electric Generators)
• Bharat Heavy Electricals Limited, Ranipet
  632406
• Phone [phone], Fax [phone],
• E-Mail kskrithi_at_bhelrpt.co.in

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Who is an entrepreneur ? Some explanations
K.S.Krithivasan, BHEL,Ranipet
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Essentially, an entrepreneur is a person who
starts a new business venture Who sees
opportunities develops them into profit-making
businesses
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Successful entrepreneurs share a constellation of
personality traits -- some people are naturally
more entrepreneurial than others
Entrepreneurs -- bear risk while pursuing
opportunities, and often are associated with
creative and innovative actions --undertake a
managerial role in their activities
K.S.Krithivasan, BHEL,Ranipet
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Business opportunities In Engineering Sector
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Preamble
K.S.Krithivasan, BHEL,Ranipet
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What does the Industry need today?

• Skilled and efficient man power
• Cycle time reduction in operations
• Innovation in process and production
• Efficient and effective Outsourcing
• To face competition succeed
• Increased export market share
• Business excellence through TQM
• Cost reduction without compromising Product
  quality
• Optimization of materials and consumables
• To meet the Total turnkey needs of the customers
• Indigenous development

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To realize the goals targets of 11 th Plan

• As per Planning Commission report
• AAGR of 12 of the manufacturing sector is
  necessary to achieve targeted AGR of 10 of the
  industrial sector during the 11th Plan
• Crucial policy aspects to be addressed are
• Infrastructure up gradation
• enabling fiscal structure
• technological modernization
• amendment of labour laws and corporate laws
• enhanced accessibility to institutional credit

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To realize the goals targets of 11 th Plan
Generation of adequate employment is one of the
crucial elements in the Eleventh Plans vision of
inclusive growth. This major target of
employment generation in the non agricultural
sector ( gt 6 per annum) is intimately linked
with the growth of the industrial sector its
location and type
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Advantage India
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Battles of this century will be fought and won on
the power of ideas. Societies will
increasingly promote knowledge-based
industries. India -- Distinct comparative factor
advantage as a vast reservoir of skilled
manpower. Over the next 20-30 years, India has
distinct advantages in a population profile
concentrated in the younger age group, where many
new opportunities can be fully optimized.
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For India, growth is an imperative. To become a
major economic powerhouse by 2020 or 2025,
Economic growth to accelerate beyond the current
rates of 5-6 per annum. At current growth rates
unemployed population - estimated range between
19 and 37 million by 2012, the largest share of
which will be educated youth. Unemployment and
poverty resulting from inadequate growth will
retard other efforts to place India amongst the
top global economic powers. Hence, the
acceleration of economic growth and the
employment of skilled youth in the next two
decades are key concerns for India Inc.
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• U.S. growth rates of the 1990s
• Due to productivity increases enabled by a
  highly skilled workforce.
• In the next two decades --
• developed countries faced a shortfall of
  skilled
• professionals and looked towards
  developing countries to make up the shortfall.
• Estimated net workforce shortfall is 32-39
  million by 2020 in the developed countries of
  today.
• Challenge faced by some countries presents a
  great opportunity for some developing
  countries, such as India.

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Recognition of workforce shortage problem
...spurred by the retirement of more than 61
million workers in the next 30 years, workforce
will be short of almost 5 million workers by 2011
and almost 36 million workers by 2031...
- - Ed Potter, President, US Employment Policy
Foundation The American Workplace Report 2001
Building America's Workforce for the 21st Century
Germany would have to bring in 1.2 million
immigrants annually if Europe's biggest economy
and world's third largest economy hopes to avoid
a crippling long-term labour shortage due to the
ageing of its own work force."
- - German Institute of Economic Research, 2001
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By 2003 the U.K. will lack 300,000 skilled IT
workers, causing a significant cost to
businesses productivity. This skills gap is
forcing up the average salary of a skilled IT
Manager to over 70,000 - a cost that many small
and medium-sized businesses struggle to justify
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European commission research, 2000 ...ageing of
society is the biggest problem facing
Japan.....Japan would need 600,000 immigrants a
year to make up for the shortfall in its
workforce later this decade
- The Guardian, U.K.,
Aug 2, 2001
Recognition of workforce shortage problem
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India can target the estimated global shortage by
providing remote services to these countries and
also by importing customers and servicing their
needs in India. Remote services - Estimated
133-315 billion of additional revenue and
addition of 10-24 million jobs (direct and
indirect) by 2020. Importing customers into
India (medical tourism, educational
services, leisure tourism) Estimated 6-50
billion in revenue and create 10-48 million
jobs (direct and indirect) by 2020. India could
enhance year-to-year GDP growth by up to 1.5
over current growth rates, most of which
(80-85) would be through remote services.
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Energy Generation Sector
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All India Installed Capacity of Power Stations As
on 30th June 2008
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Required investment in the Indian Power Sector
( Next 3 to 5 years)

• Areas for investment
• Additional generation capacity
• Transmission system to envisaged additional
  generation capacity
• Renovation and Modernisation
• Cross Country Grid
• Eff. improvement in generation
• Reduction of TD losses Energy Audit /metering
• Energy Conservation Demand Side Management

Total about INR. 8,700 bn
Source Ministry of Power All figures in billion
INR
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Comparison of Energy Utilisation in 2031-32 with
present
K.S.Krithivasan, BHEL,Ranipet
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Renewable Energy Sector
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Global renewable energy investment close to 150
Bn USD in 2007

• Latest report on Global Trends in Sustainable
  Energy Investment 2008 by UNEP Sustainable Energy
  Finance Initiative shows that
• Once again, global investment in sustainable
  energy broke all previous records, with 148.4
  billion of new money raised in 2007, an increase
  of 60 over 2006.
• Total financial transactions in sustainable
  energy, including acquisition activity, was
  204.9 billion1. Asset finance investment in
  new renewable energy capacity - was the main
  driver for this surge in investment, rising 68
  to reach 84.5 billion in 2007, fuelled mainly by
  the wind sector.

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Renewable Energy Potential Vs Actual
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Global Wind Power Industry

• Employs around 200,000 people
• Has an annual turnover of more than US 23
  Billion
• Has been growing at an annual rate of more than
  28 for the last
• 10 years
• Meets the Electricity needs of more than 25
  million households
• Is concentrated in Europe, which accounts for
  65 of total
• capacity and most Of the major turbine
  manufacturers
• Over 100,000 wind turbines installed today in
  70 countries
• Over 100,000 MW of installed capacity

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World Energy Scenario
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As per the study of Energy Information
Administration of USA

• World marketed energy consumption projected to
  increase by 50 percent from 2005 to 2030.
• Total energy demand in non-OECD countries will
  increase by 85 , compared to an increase of 19
  in OECD countries.
• Total world energy use rises from 462
  quadrillion Btu in 2005 to 563 quadrillion Btu in
  2015 and then to 695 quadrillion Btu in 2030
• Global energy demand grows despite the sustained
  high world oil prices that are projected to
  persist over the long term.

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As per the study of Energy Information
Administration of USA
Fossil fuels expected to continue supplying much
of the energy used worldwide. Liquids will supply
the largest share of world energy consumption
over the projection period, but their share
expected to fall from 37 in 2005 to 33 in
2030 World use of liquids and other petroleum
grows from 83.6 million barrels oil equivalent
per day in 2005 to 95.7 million barrels per day
in 2015 and 112.5 million barrels per day in 2030.
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As per the study of Energy Information
Administration of USA
World production of unconventional resources,
which totaled only 2.5 million barrels per day in
2005, increases to 9.7 million barrels per day in
2030, accounting for 9 total world liquids
supply in 2030 on an oil equivalent
basis. Worldwide natural gas consumption
increases from 104 trillion cubic feet in 2005 to
158 trillion cubic feet in 2030. Natural gas is
expected to replace oil wherever possible. World
coal consumption is projected to increase from
123 quadrillion Btu in 2005 to 202 quadrillion
Btu in 2030 -China alone accounts for 71 percent
of the increase in world coal consumption The USA
and India - each account for 9 percent of the
world increase.
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As per the study of Energy Information
Administration of USA
World net electricity generation nearly doubles
in the IEO2008 reference case, from about 17.3
trillion kwhrs in 2005 to 24.4 trillion kwhrs in
2015 and 33.3 trillion kwhrs in 2030 Electricity
generation from nuclear power projected to
increase from about 2.6 trillion kwhrs in 2005 to
3.8 trillion kwhrs in 2030, as concerns about
rising fossil fuel prices, energy security, and
greenhouse gas emissions support the development
of new nuclear generation.
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As per the study of Energy Information
Administration of USA
Worlds installed nuclear capacity grows from 374
GW in 2005 to 498 GW in 2030. Of the 68 GW of
additional installed nuclear generating capacity
projected for non- OECD Asia between 2005 and
2030, 45 GW is in China and 17 GW in
India Worldwide, the consumption of
hydroelectricity and other renewable energy
sources increases by 2.1 per year in the
IEO2008 reference case, from 35 quadrillion Btu
in 2005 to 59 quadrillion Btu in 2030. World CO2
emissions continue to increase steadily from 28.1
billion metric tons in 2005 to 34.3 billion
metric tons in 2015 and 42.3 billion metric tons
in 2030 an increase of 51 over the projection
period.
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World Carbon Dioxide Emissions 2005-2030
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Engineering MARKET OPPORTUNITIES
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The Engineering Sector is Experiencing Robust
Growth- Domestic Performance The performance
of the engineering sector is linked to the
performance of the end user industries for this
sector. The user industries for engineering
include power utilities, industrial majors
(refining, automotive and textiles), Government
(public investment) and retail consumers (pumps
and motors). The Engineering sector has been
growing, driven by growth in end user industries
and the new projects being taken up in the power,
railways, infrastructure development, private
sector investments fields etc.
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Availability of raw materials, skilled
resources Among developing countries, India
offers the best combination of low costs
availability and skills and capabilities of
manpower for the engineering sector. In terms of
availability and skills, India produces over 500
PhDs, 200,000 engineers, 100,000 non-engineering
postgraduates and 21,00,000 other graduates each
year, thus ensuring a steady supply of qualified
manpower for the sector. India also has a
significant labour cost advantage over most other
countries.
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Availability of raw materials, skilled resources
contd.. Higher education. India has a
well-developed technical and tertiary education
infrastructure of over 250 universities, 1500
research institutions and over 10,000 higher
education centres, which support the engineering
sector not only by supplying a steady stream of
qualified manpower, but also in areas of research
and development. India has a well developed
vendor base for supporting engineering
industries. Industries such as machine tools,
textile machinery, auto components, etc, provide
ample support to the engineering sector and
promote self sufficiency. Some of the sectors
have developed global capabilities
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FUTURE OUTLOOK   Very promising -- Drivers like
infrastructure development, industrial growth and
favourable policy regulations will ensure growth
in manufacturing. Emerging trends such as
outsourcing of engineering services can provide
new opportunities for quantum growth.
Engineering and design services such as new
product designing, product improvement,
maintenance and designing manufacturing systems
are increasingly getting outsourced to countries
like India. Present market potential for
outsourced engineering services is between US 7
billion and US 12 billion, while the value of
work currently undertaken by vendors in India is
estimated between US 400 million and US 500
million. Indias engineering sector has a
significant potential for future growth, both in
manufacturing and services.
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To Summarise
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The Indian economy growing at a brisk pace of
over 9 per cent has thrown opportunities in a
vast array of disciplines like retail, aviation,
hospitality, entertainment and brokerages. The
ABB Study on Job Opportunities in Emerging
Sectors revealed that a wide information gap
exists for the students aspiring for rewarding
careers, which await them not only in the much
sought after IT and Management but also in
numerous emerging areas.
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Job Opportunities in Emerging Sectors by 2010
Sector No. of Jobs
Retail 2,000,000
KPOs 250,000
BPOs 2,300,000
Hospitality 94,000
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Growth in economy is being led by the services
sector as also the manufacturing sector which
grew by 11 and 12.3 respectively IT-ITES
sector, the biggest employment generator, having
hired a work force of about 1.63 million by March
2007 would continue to hire most aggressively.
The IT-ITES industry is expected to fall short of
5,000,000 technology professionals by 2010, as
per the estimates.
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With the quest of global competitiveness
gathering tremendous momentum, a whole gamut of
opportunities is coming youths way Apart from
the highly skilled engineering jobs, BPOs, KPOs
and more recently Legal Process Outsourcing
(LPOs) have been offering a variety of jobs
requiring different levels of skills
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According to a study, the global companies are
increasing their presence in the knowledge
processing after the BPO success in India.
Knowledge Process Outsourcing (KPO) which is a
USD 3 billion industry, may scale up to reach USD
10-12 billion by 2010.
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After BPOs, KPOs (Knowledge Process Outsourcing)
are emerging as a lucrative job destination for
the youth. It is set to create 250,000 jobs by
2010, hiring workforce from a range of
backgrounds from science, engineering, law,
accounting, pharmaceuticals to technological
streams.
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LPO, though at a nascent stage, is expected to
grow fast due to a significant cost advantage in
India. It would generate about 79,000 jobs by
2015. At present the processes being outsourced
to India include patent application drafting,
legal research, pre-litigation documentation,
advising clients, analyzing drafted documents,
writing software licensing agreements and
drafting distribution agreement
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High consumer spending has spawned a huge
interest in the retail sector, which is still 97
per cent unorganized. As of today the Government
allows FDI in single brand retail and Cash and
Carry business. It is estimated that the sector
will add USD 14 billion in terms of market size
by 2010 to cross USD 21.5 billion. As per the
study, retail is expected to churn out the
maximum number of job opportunities among the
upcoming fields after IT/ITES. The forecasts
suggest that the sector may create 2,000,000 jobs
by 2010 directly through retail operations.
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With the business travel increasing at a rapid
pace and Commonwealth Games round the corner,
hoteliers are in the expansion mode. The sector
would need a fresh workforce of at least 94,000
by 2010-11. The HR managers are looking to hire
graduates from home science, commerce, physics
and engineering for the sector. Trained personnel
are required for food and beverage, house keeping
and front office customer care.
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Bollywood driven music industry including
expanding reach of FM is leading to expansion of
the entertainment sector in a big way. Besides,
the content creating firms for the television
have grown manifolds. The animation industry has
grown by over 30 per cent on year-on-year basis
in the last three years and looks promising in
the time to come as well. The segment alone would
need close to 300,000 professionals by 2009.
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The aviation sector in India is growing at a
whopping 25 per annum, creating abounding job
opportunities. The sector is particularly faced
with a crunch of pilots. The industry is expected
to add 130 airliners to the current fleet of 270
airliners, which would further generate a huge
demand of manpower. The openings would be
generated in the areas of flight dispatchers,
cabin crew, airline managers, airport managers
and ground handling personnel. The industry would
create 200,000 jobs by 2017.
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Growing at more than 10 per cent for the past
three years, Financing, Insurance, Real Estate
and Business Services have outpaced overall GDP
growth. Consequently, there are abundant
opportunities in finance and more will pour in
the years to come. With investment and banking
companies growing at a rapid pace there would be
many vacancies in retail banking, asset
management and financial management inter alia.
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Skilled Knowledge Workforce

• Indias Competitive edge is man power
• Over 380 Universities (11200 colleges)
• 1500 research institutions
• Over 200,000 engineering graduates
• Over 300,000 post graduates from
• non-engineering colleges
• 2,100,000 other graduates
• Around 9000 PhDs

K.S.Krithivasan, BHEL,Ranipet
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Opportunities are many Let us work on our
Strength Reap the Harvest
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THANK YOU