Mumbai: Industry body ASSOCHAM says that the PR industry is likely to double its size to over $6 billion by 2010, from the current $3 billion, as companies increasingly rely on PR professionals to enhance their brand image in order to maximise benefits of the current economic boom for increased sales and higher turnover volumes.

The above findings have been arrived at by a random survey carried out by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) on ''Attrition Vs. PR & its future prospects'', in which views of over 400 PR professionals were elicited. It highlights that as a result of growing opportunities costs in PR industry, attrition has become a core concern.

Releasing its findings, the ASSOCHAM President Venugopal Dhoot, himself a lead consumer durables player, said that over 90 per cent of PR professionals at the entry level, with enthusiasm and a passion for hard work, are moving on in search of greener pastures within the industry in less than a year's time.

Dhoot, whose Videocon group spends roughly Rs3000 crore in brand building initiatives, pointed out that the ASSOCHAM survey confirms the trend that a large number of corporates are opting to rope in PR professional for increasing sales turnovers, as one of finest marketing strategies.

The survey reveals over 75 per cent of the respondents said that pressures apart, PR activities demand a diversification of intellect, which is most attractive when availing numerous opportunities, is why the attrition rate is so high.

A majority of PR professional said that the economic boom has resulted in immense competition in brand building, as result of which PR agencies are in great demand, and are quoting market driven prices for their services. It also says that takers are available at these prices as well.

Since the demand for PR professionals is rising, so are opportunities for relationship industries. This is cited as a major reason for the growth rate of around 22-25 per cent in last couple of years, which has now risen to 32 per cent, and according to ASSOCHAM, will continue as a trend. Quoting findings of the survey, Dhoot said that by 2010 the PR industry size would grow to more than $6 billion.

According to estimates by ASSOCHAM, the Indian PR industry comprises 1200-1500 agencies, with manpower strength of between 30,000 to 40,000.  In terms of vertical markets, healthcare has been identified as one of the fastest-growing sector; however, the public sector, the environment, and corporate social responsibility (CSR) are also emerging as growth areas for PR.

The overriding concern of the industry is a serious shortage of skills. ASSOCHAM says that almost all agencies are hiring, displaying a trend that is itself indicative of growth. It says that some are even looking outside the PR industry to bring in new skills.

Although there are many thousands of small agencies and individual consultants serving highly localised markets, larger agencies are forging partnerships across the globe to meet demand from clients who themselves are increasing their global reach.

The ASSOCHAM study says that over 100 agencies, including large ones with 10-15 branches pan India such as Perfect Relations, Genesis PR, and Vaishnavi, or medium size ones with 4-5 branches and smaller city specific PR agencies, who function as affiliates of global PR companies. Additionally, ASSOCHAM says industry specific agencies such as Text100, 2020, Imprimis, and Adfactors who cater to specific needs of the IT, health care, and financial services companies.

PR is being used as a supplement to advertising, as part of an integrated and effective communications strategy, primarily because at times advertising does not suffice in communicating the exact message. PR services not only help in communicating the message, but can also help in generating a response.

ASSOCHAM says that an average PR agency's usual retainer fee can range anywhere between Rs2.5 to Rs5 lakh. The association says the reasons for shortage of professionals in PR are:

•  Lure of better pay: If skilled manpower is scarce, professionals will inevitably be poached for higher salaries.
• Leadership crisis: Being a fairly new industry it does not have too many established players. Hence, there are very few veterans and worthy leaders in top management positions. This presents a crisis of leadership in smaller firms, which makes people move onto larger and more reputable companies.
• Lack of understanding of PR: This may come as a surprise, but most people still have a very vague notion of PR.

ASSOCHAM says that with the scorching pace of growth, agencies are facing an acute shortage of trained manpower, which is reflected in the 30-35 per cent hike in top-level salaries that the sector has witnessed over the last one year. Compounding the problem are attrition rates touching 30-40 per cent.