Aarvi Encon Ltd Management Discussions.

One of the direct impacts of a changing business ecosystem on companies has been on their talent demands. This has meant that staffing industry in India have a larger role to play in upcoming years. Helping organizations in predicting and meeting their talent demands, staffing firms can help such companies successfully navigate incoming changes and focus on their core business. Organizations today have an undeniable need to focus on innovation, maintain an unwavering commitment for achieving results, so they look for specialist for project hire in a definite time and all this while creating a positive workplace culture. With these aspects in focus, the Staffing industry in India is emerging in all its regions including Technical and Engineering sectors. The Technical Staffing Opportunity is available in the industries like:

• Oil and Gas/Refinery

• Engineering Outsourcing

• Renewable Energy

• City Gas Distribution

• Pipeline

• IT Staffing


India plans to shift to Bharat VI emission :

Indian government on the recommendation of central pollution control board adopted the boldest move to curb air pollution, the government has decided to advance the standard for cleaner cars and leapfrog to Bharat Stage-VI emission norms countrywide by April 2020 as its deadline. The norms were introduced in 2000. With appropriate fuel and technology, they limit the release of air pollutants such as nitrogen oxides, carbon monoxide, hydrocarbons, particulate matter (PM) and sulphur oxides from vehicles using internal combustion engines. As the stage goes up, the control on emissions become stricter. Thus Bharat Stage VI norms are two stages ahead of the present Bharat Stage IV norms in regulating emissions.

BS-IV fuels contain 50 parts per million (ppm) sulphur, the BS-VI grade fuel only has 10 ppm sulphur. BS VI can bring PM in diesel cars down by 80 per cent. So, all the refineries are implementing BS VI which requires large number of engineers for their projects.

Oil refineries will need to invest Rs 80,000 crore in upgrading petrol and diesel quality to meet cleaner Euro-IV/V fuel specifications by 2020.As the required infrastructure for production of BS-VI fuels are being developed in oil refineries, the Committee recommend the Ministry to strictly adhere to the implementation schedule of BS-VI by 2020 so that ‘One Country-One Fuel Norm will become a reality."

• Refinery and petrochemical projects are planned which will lead to employment generation in the country.

Indias Petroleum, Chemicals and Petrochemicals industry is well established and has grown steadily over the years. The industry is crucial for the development of manufacturing sector in India as it provides building blocks for various downstream sectors such as pharmaceuticals, agriculture, textiles etc.

Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) were conceptualised to sustain the growth of the sector by providing quality infrastructure, competitive business environment and Viability Gap Funding (VGF). The PCPIRs would bring together manufacturing facilities, logistic and other services, required infrastructure, residential and administrative areas which will indirectly boost employment in the country.!

Around Rs 1.83 lakh crore has been invested and over 3 lakh people have been employed so far in four petrochemical investment regions says Indian Government.

Upon completion, these PCPIRs will have an estimated investment of approximately Rs 8 lakh crore and are expected to generate employment for approximately 40 lakh people. So far, around Rs 1,83,000 crore have been invested in these PCPIRs and more than 3 lakh people have been employed," the minister was quoted as saying in the statement.

On the successful implementation of PCPIR in Gujarat, Mandaviya said ONGC Petro Additions Ltd (OPaL) has been established as the anchor unit at Dahej. As many as 170 industrial units are already functional, while over 830 units are in different stages of implementation at PCPIR Dahej, the minister said, adding that Rs 86,000 crore have been invested so far generating 1,32,000 jobs.


The engineering sector in India attracts immense interest from foreign players.

The Indian Engineering sector has witnessed a remarkable growth over the last few years driven by increased investments in infrastructure and industrial production. The engineering sector, being closely associated with the manufacturing and infrastructure sectors, is of strategic importance to Indias economy.

The engineering sector is a growing market. Spending on engineering services is projected to increase to US$ 1.1 trillion by 2020. The Government of India has also taken initiatives to provide a level playing field to domestic and foreign private players bidding for the government contracts in defence sector. The government has withdrawn excise and customs duty exemptions granted to goods manufactured and supplied to the defence ministry by state-owned defence firms.

Our employment landscape is changing and its clear that contract staffing has come to be one of the most effectively viewed labour solutions.


Of late, the concept of contract staffing or recruiting job candidates via third party staffing companies has gone up considerably in the Indian recruitment scenario. Businesses in India-domestic and multinational corporate have resorted to the idea of temporary hiring and have started outsourcing recruitment via numerous staffing companies. Currently, India has the third largest contract staffing workforce in the world, after China and the US. The Government of India continues to be the biggest employer of temporary workforce amounting to nearly 15 million. The Indian staffing industry on Manpower recruitment on contract, is expected to grow by at least 20% by 2020 as per the Staffing Industry analysis, global advisor on staffing and workforce solutions. Contract staffing is being increasingly accepted as a preferred mode of recruitment by many sectors.

Faster turnaround time of overall recruitment process: Contract staffing agencies have an existing talent pool which can be useful to quickly close an open position. Recruitment Agencies have the tools, resources and connections which help them to find the most appropriate talent that suits an organisations need. Finding high-skill talent can be in a short span of time and within a specified budget can be very challenging however staffing companies can easily source such candidates from the existing talent pool that they have.


Indias highly qualified talent pool of technical graduates is one of the largest in the world, facilitating its emergence as a preferred destination for outsourcing, computer science/ information technology accounts for the biggest chunk of India fresh engineering talent pool.

Technologies, such as telemedicine, health, remote monitoring solutions and clinical information systems, would continue to boost demand for IT service across the globe. IT sophistication in the utilities segment and the need for standardization of the process are expected to drive demand. Digitization of content and increased connectivity is leading to a rise in IT adoption by media.

Indian Staffing Federation(ISF), an apex body of staffing industry, unveiled report on "Indian IT Staffing Industry and landscape" According to the report, the flexi staffing market in India is worth more than 3 billion in 2017 and is expected to grow 15% per annum by 2021. The penetration rate of flexi workforce in IT with respect to total IT workforce in India is 6%.

IT industry is currently at the juncture of massive transformation with influx of new technologies including artificial intelligence, machine learning, cloud, analytics, Internet of Things etc. The demand for niche skill set for such evolving technologies and meeting immediate requirements, are encouraging hiring of IT flexi staff. In India, IT flexi staffing industry is still at a nascent stage with lots of unexplored opportunities.

India Staffing Federation is also proactively working with the government and other stakeholders and one of our biggest achievements for the staffing industry is the consideration of the National Licensing at state and national level by the labour ministry. The move will simplify doing business for corporate and increase flexi hiring across sectors."

India is the topmost off shoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India and is expected to reach USD 5 Billion by year 2021 with 15% growth.



The Government of India is committed to increased use of clean energy sources and is already undertaking various large-scale sustainable power projects and promoting green energy heavily. In addition, renewable energy has the potential to create many employment opportunities at all levels.

The Ministry of New and Renewable Energy (MNRE) has set an ambitious target to set up renewable energy capacities to the tune of 175 GW by 2022 of which about 100 GW is planned for solar, 60 for wind and other for hydro, bio among other. As of June 2018, Government of India is aiming to achieve 225 GW of renewable energy capacity by 2022, much ahead of its target of 175 GW as per the Paris Agreement. Indias renewable energy sector is expected to attract investments of up to US$ 80 billion in the next four years.

India is progressively becoming a most favoured destination for investment in renewable energy. It is expected that by the year 2040, around 49 per cent of the total electricity will be generated by the renewable energy, as more efficient batteries will be used to store electricity which will further cut the solar energy cost by 66 per cent as compared to the current cost. This indicates that New opportunities for employment sector will grow by leaps and bounds.


Staffing is a critical organizational function which consists of the process of acquiring, deploying, and retaining a workforce of sufficient quantity and quality for the effectiveness of the organization.

In fact the performance of the organization largely depends on the quality of its people. Hence the staffing function of the management is an important function and it involves in the building of the organizational workforce.

In the case of SMEs however, staffing firms have an opportunity to play more of a leadership role. Helping organizations in predicting and meeting their talent demands, staffing firms can help such companies successfully navigate incoming changes. With the rising importance of SMEs and start-ups in Indias growth, there will be a rise in demand for talent, an area where staffing companies, with their troves of experience, can be sure to fill.

In 2020, people will be more educated about the staffing industry and the benefits of contingent work; Staffing also "will be a much more widely accepted industry globally. Well start to see much more global recognition of the contingent labour force."


The Government has envisaged to develop the National Gas Grid. At present about 16,788 Km natural gas pipeline is operational and about 14,000 Km gas pipelines are being developed to increase the availability of natural gas across the country. Which is in addition to over 11,000 km of existing cross-country pipelines, Minister of State for Petroleum & Natural Gas.

Another 14,000 km of pipelines infrastructure is under various stages of implementation," an oil ministry statement. The development of pipeline infrastructure is an ongoing process which will progress with the increase in demand of natural gas. The government has initiated multi prolong measures to increase availability of natural gas in the country including intensifying domestic exploration and expeditious production of coal bed Methane (CBM).

The impact of the newly designed projects would lead to widespread generation of job opportunities for Engineers and Technicians in various levels. This further creates more optimistic picture regarding the employment creation potential for demography and socio-economic progress of the nation. The planned projects are also a ray of development for staffing industry to raise their economic power and aspiration at global level.


City gas distribution (CGD) network is turning out to be the next big downstream expansion in India. CGD refers to transportation or distribution of natural gas to consumers in domestic, commercial or industrial and transport sectors through a network of pipelines.

The Government aims to connect 1 crore households with piped gas by 2020. This is in line with increasing the share of natural gas in the primary energy basket from 6% to 15% in a phased manner, over the next few rounds of bidding. The 10th CGD Bidding Round covers 50 Geographical Areas (GA) spread over 14 States and 124 Districts. In this Round, about 225 bids were received in respect of all the 50 GAs offered, and a total of 12 companies managed to get 50 Geographical Areas (GAs) that were on offer under this round, which also includes participation from two foreign consortiums in this round..

An investment of about Rs 50,000 crore is expected in setting up of CNG stations and pipelines to take cooking gas to households in 50 towns and cities that were bid out for city gas licence in the 10th round. It is envisaged that this initiative would help in creating a robust infrastructure by bringing an investment of about Rs 50,000 crore, generate employment and play a significant role in achieving the shift towards a gas-based economy, with natural gas as the next generation, cheaper and environment-friendly fossil fuel.

Post the successful implementation of the 10th CGD Bidding Round, about 70% of the country shall be under the umbrella of the CGD network.

Financial compression is as follow:


Standalone (Rs. In Crores)

Consolidated (Rs. In Crores)

Year ended 31st March, 2019 Year ended 31st March, 2018 Year ended 31st March, 2019 Year ended 31st March, 2018
Net Revenue from
Operations 191.93 168.87 206.03 173.48
Other Income 1.20 1.21 1.20 1.52
Total Income 193.13 170.09 207.24 175.01
Total Expenditure 185.23 162.03 196.62 165.47
Profit before tax 7.90 8.05 10.61 9.54
Current Tax 1.30 1.86 1.29 1.91
Deferred Tax 0.22 0.03 0.20 (0.15)
Profit after taxes 6.37 6.16 9.11 7.77

Total operating revenue was Rs. 206. 03 Cr. for F.Y. 2018-19 as compared to Rs. 173.48 Cr. in F.Y. 2017-18 there was increase of 19% in operating revenue, Operating EBITDA was Rs. 12.40 Cr. for F.Y. 2018-19 as compared to Rs. 11.33 Cr. in F.Y. 2017-18 with an increase of 9%. Profit after Tax (PAT) was Rs. 9.11 Cr. for F.Y. 2018-19 as compared to Rs. 7.77 Cr. in F.Y. 2017- 18 reflecting increase of 17%. The Company has on an average Compounded annual growth rate (CAGR) of 20% from last 5 years.