Financial Daily from THE HINDU group of publications
Monday, Feb 13, 2006
Financial Daily from THE HINDU group of publications Monday, Feb 13, 2006 |
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Corporate
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Human Resources Ashok Leyland begins skill hunting in the US
M. Ramesh
Chennai , Feb. 12 GUESS what Ashok Leyland's Managing Director, Mr R. Seshasayee, believes to be the company's most formidable challenge? Getting skilled engineers. "There is a dearth of engineers for the middle and senior levels," he told Business Line. But that the company for sure has a plan to meet the challenge. "Our team is going to the US this summer to recruit engineers," he said. Embedded in the statement lies a clue to the market realities in the global automotive industry. The US car majors are struggling against the onslaught of their Japanese counterparts. But this seems to have thrown up a favourable fallout to the Indian automotive industry. Many Indian engineers employed in the US are returning to India (or, having to return to India). For companies such as Ashok Leyland, they represent a talent pool to tap. Hence, the visit of the Ashok Leyland team to the US. Most of the engineers are sought for product development area. Over the last 2-3 years, the company increased the strength of its product development engineers from about 250 to about 450. Now, it intends to bring in another 400 or so. The other challenge the company may face is the threat from China. "They (the Chinese) are building huge capacities; they are fast acquiring technology. We should not dismiss the threat from them," he said. But he believes that the threat is imminent in the lower end — the LCV segment. To some extent, Ashok Leyland has a natural shield in terms of its established network of dealers and service centres — factors that are seen as important by fleet operators who, incidentally, form the company's main customer base. "We can also import components from China," Mr Seshasayee observed, pointing out another counter to the Chinese threat. But what of import of components from Thailand, which the Indian component industry believed to be a big threat to them, when the Indo-Thai Free Trade Agreement was signed? "We have found that the cost advantages are not compelling," Mr Seshasayee said. He noted that after the FTA was signed, the prices of Indian made auto components fell.
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