| The new-age manufacturing |
| Opportunities - Manufacturing | |||||||
| Written by Vimarsh Bajpai | |||||||
| Thursday, 01 November 2007 00:00 | |||||||
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India is on its way to become a major contract manufacturing hub. Are entrepreneurs ready to pitch in? Contract manufacturing involves outsourcing or sub-contracting to a company, which has the resources to manufacture products or components at low-cost without compromising on quality. The firm that outsources work owns the design and patent rights, and is called the original equipment manufacturer (OEM). The business model involves economies of scale with OEMs focusing on their core competence by outsourcing manufacturing to low-cost destinations. For long, Taiwan and China have been at the centre of the manufacturing boom in Asia. So much so, that 80% of toys sold in the US are made in China. But things are slowly working in favour of India. There is a huge opportunity in manufacturing waiting to be tapped.A proper synergy between the OEM and the contract manufacturer (CM) may also result in the latter bagging marketing rights of the product using the OEM’s brand name. The OEM either invites bids from empanelled contract manufacturers or approaches a CM of its choice with its design. Based on the cost of labour, process and tooling, a CM quotes its price. The OEM then decides on the CM taking into account various factors such as shipping costs and tax benefits. Various sectors involve contract manufacturing with pharmaceutical, automobile and electronics hardware being the major ones. Advantage India “India is changing from a command economy focused on self-sufficiency to becoming a key link in the global economic chain,” KPMG says in its report titled ‘Manufacturing in India: opportunities, challenges and myths’. As a global manufacturer, India is well placed by geography, language, and historical association to service customers in advanced economies, while as a regional manufacturer India has highly developed historical trading links with the Middle East and Africa as well as its own south Asian back yard, it says. The big market On the other hand, pharma contract research and manufacturing (CRAMS) market in India, which was valued at $532.10 million in 2005, is expected to touch $900 million by 2010, according to ASSOCHAM. The country could exploit its strengths to export electrical and electronic goods worth up to $18 billion a year by 2015, say analysts. India’s toy exports have doubled from Rs 200 crore in 2003 to Rs 400 crore in 2007, according to reports.
Comments (11)
![]() written by Sumit Mehta, June 14, 2010
We,Mehta Enterprises, Manufacture Washers(plain, HT, Stainless Steel). Are willing to provide our services. Do write in at summehta@gmail.com
Regards Sumit Mehta 97666 33788 report abuse
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written by caje, June 12, 2010
Hi Pleae let me know of any manufacturing concept or contract manufacturing , willing to invest.
REGARDS, Caje report abuse
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written by Nisheeth Singh, November 26, 2009
I have completed my MBA from a prestigious institute and am intrested in contract manufacturing in any field in Uttar Pradesh, so if any party is intersted please feel free to contact me.
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written by Akshay Abhay Walawalkar, July 11, 2009
we are solution providers in industrial automation solutions, electronic and instrumentation . intrested parties in outsoursing please contact us
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written by Mohammed Abdul Khader, April 29, 2009
I am looking for establishing a manufacturing or service oriented company which provides professional services for the indian industry especially in and around hyderabad industrial belt. Companies who are keen in this line of activity can contact me @ +91 9701797670 or through mail: aykhader@yahoo.com
This is an urgent requirement and response needed immediately. Can be personally met and discussed in detail. M A Khader Managing Director Crane Inspection & Maint. Services Hyderabad report abuse
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written by Somatilaka Jayamaha, March 30, 2009
We are the biggest electrical manufacture in Sri Lanka. We have capacity to do engineering products, Moulding tools,plastic moulding,assembling ect
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written by john, November 20, 2008
we are a contract manufacturer for sheet metal and fabrication jobs, interested in parties looking to get their jobs outsourced.
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written by Aniruddha Doshi, October 08, 2008
i am intrested in contract manufacturing in any field so if any party is intersted please feel free to contact us.we are group of family individuals with good bussiness and education background.
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i am intrested in contract mnaufcring i want to knw to whom shall i contact get all the detail or gudience about contract man