India - A Global Manufacturing HUB
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Case Details:
Case Code : BREP010
Case Length : 14 Pages
Period : 1995-2004
Pub Date : 2004
Teaching Note :Not Available
Organization : -
Industry : Manufacturing
Countries : India
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Automotive Components
The automotive components industry in India has also witnessed significant growth over the past decade. The country is home to many world-class auto component suppliers. As per 2003 estimates8, the auto components industry in India was worth Rs. 245 bn...
Diamond/Jewelry
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India has been one of the leading exporters of gems and jewelry next only to countries like Belgium (Antwerp) and Israel (Tel Aviv).
In terms of value, Indian exports constitute about 55% of the world's polished diamond market. Rough diamonds sourced from abroad are cut and polished by skilled craftsmen, after which they are exported.
According to the Gems and Jewelry Export Council, the export of diamonds, coupled with other gems and jewelries, contribute to around 20% of India's foreign exchange earnings annually...
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IT and Hardware
It is widely believed that India's IT hardware industry has not performed well as compared to its renowned software industry. However, over the past couple of years this trend has been changing. India is slowly emerging as a manufacturing hub for IT hardware as well. India has already acquired a good reputation in the hardware and IT appliances segments...
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Looking Ahead
By achieving global recognition in several manufacturing based industries, India is well poised to emerge as a global manufacturing hub.
In the automotive industry, the Tatas demonstrated that world class cars can be both designed and made by Indian firms in India.
In the auto components industry, companies like BFL and SFL have
demonstrated that Indian firms can make world class auto components at a
much cheaper rate. In the IT hardware sector, India is slowly picking
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Moreover, in several other industries as well, like the pharmaceutical industry and the medical care industry, Indian companies are acquiring world class competencies and offering stiff competition to other developing countries like China, Thailand and Brazil and Mexico (Refer Exhibit IV for a snapshot of Indian industry)...
Exhibits
Exhibit I: Relative Costs of Manufacturing
Exhibit II: Total Automobile Sales in India
Exhibit III: PC Sales in India
Exhibit IV: The Bright Spots in Indian Industry
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