The handset industry is set to hire around 50,000 direct employees by March, 2021, under the impetus of the production-linked incentive (PLI) scheme, which has encouraged global and local players to set up and expand manufacturing factories in India.
Recruiters say the blue collared workforce returning to the cities and the push for diversity, has mobile makers set up hiring mandates with assurance of safe workplaces amidst Covid-19 outbreak.
“From now till March next year, the handset industry will hire 50,000 direct employees. After the lockdown was removed, many have returned to the cities and the PLI scheme is finally taking shape,” Pankaj Mohindroo, president of industry body India Cellular and Electronics Association (ICEA), told ET.
As per industry estimates, domestic manufacturers including Dixon Technologies, UTL Neolyncs, Lava International, Optiemus Electronics and Micromax are expected to generate over 20,000 direct jobs by the end of December.
The estimate is a big uptick from the hiring last year, which the industry body chairman pegs down to absence of PLI.
“The handset sector employs around 7 lakh currently…last year about 15,000 were hired. This is because the PLI scheme was still in draft state and it was a quiet year,” Mohindroo added.
Last month, the government approved the applications of 10 mobile phone manufacturing companies, including five foreign include Samsung, Foxconn units Hon Hai and Rising Star, Wistron and Pegatron for availing incentives under the PLI scheme totalling around Rs 41,000 crore to be disbursed over five years. The scheme offers an incentive of 4% to 6% on incremental sale of handsets over a base year – financial year 2019-20.
Recruiters say that the companies have changed their methods of hiring for the handset sector in post-Covid times.
According to Rituparna Chakraborty, cofounder of TeamLease Services, handset makers are looking at recruiting women candidates and taking additional steps to ensure a safe workplace. This is specially the case since the factories being set up are away from the residential areas.
“Handset makers are now hiring in post-Covid scenario where they are looking at safety measures, building hostels and dormitories for their workers,” she added.
Recruiters have also noted that along with manufacturing, there is also demand from the refurbished handset sector and exports.
The need is to hire employees from Industrial Training Institutes and the blue collared workforce. “We are also looking at the workforce from the automobile sector who are mechanical engineers since there is work coming up in assembly line and component making,” said Aditya Narayan Mishra, director of CIEL HR Services. The Business Journals