Concluding Summers June 13, 2006
Posted by tejas in Summers 2006.trackback
Ended my summer consulting assignment on 5th June. After exploring a lot of alternatives, I narrowed down to four recommendations. The central procurement cell as well my guide for global sourcing was quite happy about it. The implementation part would take time, if at all it happens. I would have loved to see it happening, but that would mean at least six months, which is way beyond the time available.
Indian manufacturing firms are way behind when it comes to low-tech products. On an average, the capacity of copper tube manufacturer in China is ten times bigger than that of his counterpart in India. Thailand and South Korea are also in the race. Primary reasons why China is succeeding is huge capacity.
Other reasons include government support in the form of SEZs like the one in Jiangsu province or Shenzhen, Zhuhai and Shantou in Guangdong Province and Xiamen in Fujian Province. The average size of these SEZs is predictably bigger than that in India.
One other factor that I noticed was trade sites promoting Chinese manufactures. There are simple too many websites. Alibaba.com, chinab2bsource.com, etc. provide great information about any manufacturing item under the sun. I’m yet to see online promotions of Indian manufacturers on such a large scale.
The Chinese success in manufacturing sector is not a stroke of luck. It is a well planned and well executed story that is well replicated by Thailand and Korea. India is nowhere near.
My report on the assignment is almost over, left with the executive summary. Don't think m gonna do that while i'm in ahmedabad. Would be landing in Delhi on 22nd… the report will get justice then…
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