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Indian Manufacturing And Global Competitiveness Posted By: subhrakant

By: subhrakant

As for geographic expansion, most Indian manufacturers companies do not necessarily have the managerial capability to run pro? t centers in other parts of the world. Also, fewIndian companies are cash-rich. Most would therefore end up acquiring very small companies that might not add value. Mergers and acquisitions, again, are often dif? cult to accomplish for Indian manufacturing companies.That leaves innovation, which has not yet been fully exploited. An ongoing Deloitte benchmark study of more than 35 Indian manufacturing companies against 140 multinational companies that have manufacturing operations in India has shed light on what Indian manufacturing companies are doing right and what they need to change. Companies across the spectrum agree that innovation is probably the manufacturing industrys most underexploited strategy. If the Indian manufacturing industry is to remain competitive over the next 15 years, it will need to focus on its innovation capabilities. The opportunity for dramaticimprovement and transformation of business models in Indian manufacturing is signi? cant. With average annual growth rates of nearly 20 percent among the companies benchmarked based in India, companies are presented with an unprecedented chance for re-inventing themselves. Growing at at rate, ve or ten years down the road, the vast majority of investments in the business will be new investments.As opposed to the multinational companies that have stopped depending on the well-being of the economy or just the market in which they operate, Indian companies seem to consider those two as the main drivers for business in the foreseeable future. Indeed, Indian companies lag behind their global competitors in research and development. This is, however, something that will start to change in the coming months and years as these companies look to launch products and services on a continual basis. The challenge is doing it right.The best-performing companies in the global benchmark research, called complexity masters, are far better at nchronizing innovation across the enterprise. They invest in better processes and technologies for optimizing the entire life cycle of products and services. The result is far better performance with pro? t levels up to 73 percent higher than the competition. Many domestic Indian manufacturers as well as multinationals operating in Indian suppliers have a hard time keeping up and building the capabilities needed to succeed.In Indian manufacturing, the most worrying evidence is that of the lack of visibility into strategic information. In fact, and somewhat alarmingly, the more strategic the information,the less the visibility! This makes it dif? cult to take the right decisions in strategy, planning and execution. The other major challenge is that of ? exibility. Indian companies will face increased complexity and constraints on ? exibility as they continue their domestic and global expansion. In fact, the average Indian company is not lean at all. Even companies that operate with just ? ve or six customers have frozen imeframes for production of two weeks or more. Were they to aim for less time, they believe they would lose money recon? guring their manufacturing schedules. They have dif? culty connecting their sales forecast to material plans or even their production plans. Indian manufacturers lack the technology support for looking at the life cycle data of the products. Without this data, innovating on the product portfolio is dif? cult, if not impossible. Indian manufacturers are far behind multinationals in India when it comes to adopting leading technologiesdespite the (perceived or real) low cost of technology in India compared to the more developed countries. This low rate of technology adoption poses a real risk to Indian manufacturers futures, limiting their participation in global value chains where these technologies are required. In the absence of lean processes or visibility, a lot of management time goes into day-to-day issues and ? re? ghting with very little time left over for future planning and innovation. Despite a lackluster record when it comes to R&D,Indian manufacturing has recorded high growth, creating a unique opportunity for innovation. In fact, India is the top
destination in the world for R&D investment. The cost of innovation in India is typically one-third that in developed.

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this subhrakant jena founder of if you need more details :Indian manufacturers
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