Increment Strategy for FY 2013-14 for Manufacturing Industry based on various reports and market data.

2. Broad Outlook—Indian Economy FY 2013-14
 GDP Growth rate
April 2012 to March 2013 : 4.8%
April 2013 to March 2014 : 4.7%
 Index of Industrial Production Growth
April 2012 to March 2013 : 1.90%
April 2013 to March 2014 : 1.40%
 Growth of Mining & Metal
April 2012 to March 2013 : - 2.33%
April 2013 to March 2014 : - 1.23%
 FDI
FY 2012-13 : USD 22.42 bn
FY 2013-14 : USD 36.4 bn
 Inflation (Consumer Price Index)
April 2012 to March 2013 : 10.44%
April 2013 to March 2014 : 10%

3. Highlights of Economy in FY 2013-14
 GDP for FY 13-14 recorded 4.7 %
 Industry grew by just 1.0 % in FY 2012-13 and slowed
further in FY 2013-14, posting a modest increase of 0.4 %.
 Agricultural allied sector registered 4.7% growth in
FY 14-15
 During FY 2013-14, FDI inflow (including equity inflows,
reinvested earnings and other capital) was USD 36.4
billion.

4. Highlights of Economy in FY 2013-14
 Sharp fall in trade deficit, closes in by 27.8 % to $ 137.5 billion
 FY 2014-15 first quarter trade deficit declined by another
42.4%
 Exports grew by 4.1 % over negative growth of 1.8 % in
FY 2012-13
 Imports drop by 8.3 %, after steep slowdown during the
previous FY 2012-13
 Following government intervention, gold and silver imports
fell by 40.1 % to $33.4 billion in FY 2013-14
 MNREGA has created labour shortage and hiked wages
 High food inflation

7. Sector wise contribution to GDP in FY 2013-14

8. Annual Increment Trends
Overall Industry Analysis
Increments are expected to be conservative,
attributable to the overall economic conditions
Year Average Increment
2012-13 12.00%
2013-14 12.50%
2014-15 15.00%
20.00%
15.00%
10.00%
5.00%
Mining and Manufacturing Increment Analysis
Year Average Increment
2012-13 15.00%
2013-14 11.00%
2014-15 14.00%
Average Increment
Average Increment
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Average
Increment
2012-13 2013-14 2014-15
0.00%
2012-13 2013-14 2014-15
Average Increment

9. Economy Outlook for FY 2014-15
 GDP growth expected at 5.4-5.9 % in FY 2014/15
 Growth rate of 7-8 % can occur after FY 2015/16
 CAD to be contained at 2.1 % of GDP in FY 2014-15
 WPI expected to be moderate by end FY 2014-15
 Improvement in manufacturing, Balance of Payments (BoP)
expected in FY 2014-15
 Industrial growth likely to revive in next 2 yrs

10. Economy Outlook for FY 2014-15
Additional Efforts expected
 Need formal monetary policy frame-work for targeting CPI
inflation
 Need to bring down inflation
 Need subsidy reforms for fiscal consolidation
 Raise tax-to-GDP ratio for fiscal consolidation

11. The top 10 business risks for Mining and Metals
1. Resource nationalism
2. Skills shortage
3. Infrastructure access
4. Cost inflation
5. Capital project execution
6. Maintaining a social license to operate
7. Price and currency volatility
8. Capital management and access
9. Sharing the benefits
10. Fraud and corruption

12. Hiring Trends expected in FY 2014-15
 Companies will be on a Hiring Spree in FY 2014-15
 Expected Attrition across industries is likely 20-25 %
 Maximum movement of Employees will be in Manufacturing,
Pharma, IT and Retail sector
 Companies are expected to hire 25-38 % in FY 2014-15 & 2015-16
expecting boom by FY 2016-17
 Companies are likely to face talent crunch
 Companies will face acute shortage of Top & Senior Executives for
Leadership Positions and also Labour class
 Maximum job opportunities for Technical, Marketing, IT & HR
professionals
 Companies will be using retention Bonus as tool to retain talent
 Employers are also likely to use mid term performance bonus in
FY 2014-15 & FY 2015-16 as strategy to retain the talent

13. Overall Industry Analysis Annual Increment

14. Salary Hikes across Sectors for FY 2013-14
Industry Sector % Rise
Auto & Auto Components 12.3
Banking, Finance & Insurance 9.7
Information Technology 12.3
Pharma/ Healthcare 9.8
Retail 12.6
Energy & Natural Resources
(Mining & Metal)
11.0

15. WHAT WE HAVE
BROUGHT FOR YOU
!!!!!

16. Increment Strategy
 Promotion to only those who were promoted before or FY
2010-11
 No revision of Increment/Promotion, once released
 Release of Increments : w.e.f 01/04/2014
 i. Increment Arrears + Oct Salary
 ii. Salary Correction w.e.f. 01/10/2014 (No Arrears)
 Cost of Increment – 15% (Bell Curve wise)
 Those Promoted will get 2-4 % extra subject to Cost of
Increment 15 %

17. Increment Strategy
 For GM and above Increment @ 8.0 % fixed and variable as per
PMS rating & budget allocation by Management, only fixed part
will be added in “CTC for increment” for FY 2014-15.
 50% of Salary Correction will be added in CTC for increment in FY
2014-15, balance 50% will be added in CTC for increment in
FY 15-16
Break up of Increment
As per CTC break up structure

18. Increment Strategy
 Cap for Increment for the Organisation : 15 % of Salary Cost /CTC for
Increment (Bell Curve wise)
 Cap for Divisions / SBUs : 15 % of Salary Cost / CTC for increment (Bell
Curve wise)
PMS Grade
Inc in % for
Manager -DGM
Inc in % below
Manager
A 16 - 18 19 - 20
B 14 - 15.99 17-18.99
C 11 - 13.99 14 - 16.99
D 10.01 - 10.99 10.01 - 13.99
E 0 - 10 0 - 10

19. Salary Benchmark

20. New Benchmarked Salary Grids for Plant Locations
Designation Education Exp. Range
( Years )
Min. CTC
(in Lakh p.a.)
Max. CTC
(in Lakh p.a.)
Avg. CTC
(in Lakh p.a.)
Sr. GM Grad./PG 20 to 25 20.00 24.00 29.67
GM Grad./PG 18 to 20 16.00 20.00 18.40
DGM Grad./PG 16 to 18 12.00 16.00 14.00
AGM Grad./PG 14 to 16 10.00 14.00 12.30
Sr. Manager Grad./PG 12 to 14 8.00 12.00 10.20
Manager Grad./PG 10 to 12 9.00 11.00 9.90
Dy. Manager Grad./PG 8 to 10 6.00 8.50 7.70
Asst. Manager Grad./PG 6 to 8 4.00 6.00 5.20
Sr. Executive Grad./PG 4 to 6 3.00 3.60 3.48
Executive MBA/BE 3 to 5 2.50 2.80 2.74
Sr. Officer Grad. 3 to 20 2.40 2.50 2.48
Officer DET/BSc. 3 to 20 1.80 2.30 2.14
Jr. Officer Grad. 3 to 20 1.50 2.00 1.68
Sr. Assistant Grad. 3 to 20 1.30 1.50 1.36
Assistant Bcom/BA 3 to 20 0.90 1.30 1.08
MT PG fresh 1.70 2.60 1.94
GET Grad. fresh 1.60 2.50 1.94
DET Diploma fresh 1.20 2.10 1.46
Trainee Bcom/BA fresh 1.40 2.00 1.82
Trainee Tech. ITI / Diploma fresh 1.80 1.08 1.39
Final Effect criteria in Salary Correction factor by Plant Head /
CEO & HR
2011 A A A B B B B C C C
2012 A B B B B B C C C C
2013 A B C A B C C A B C
100 80 70 60 55 50 40 35 30 25

21. PMS
 Delay in submission of PMS forms by HODs
 More than 250 employees followed up for Increments since
April
 04 reminder mails were sent by HR team to HODs for PMS
form completion.
 HR team personally followed up with HODs for more than
than 50 occasions.
 Employee’s Opinion about HODs approach to PMS
was very negative and sign of frustration
Bitter Pill