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Shift in production ecosystem to boost efficiency
Industry executives said that component manufacturing through government incentive schemes would help India become self-reliant and an alternative to China for global supply chains
New Delhi: India’s manufacturing ecosystem should shift towards integrated platforms which can drive efficiency and economies of scale by providing all elements of the supply chain under one umbrella, said industry executives. They added that component manufacturing through government incentive schemes would help India become self-reliant and an alternative to China for global supply chains.
Speaking at the Mint Zetwork Smart Manufacturing Summit last week, Sasikumar Gendham, MD, Salcomp Manufacturing India said that the dependence on China for raw materials and inputs has to reduce and industry must focus on component manufacturing to attract supply chain ecosystem. He added that government’s incentives schemes of PMP, SPECS and PLI had worked to bring all major manufacturers to India.
“The need of the hour is that organizations manufacturers have to not only let the assembly of products to happen in the country of what is getting consumed in the country, but also drive backward integration,” said Manish Sharma, Chairman, Panasonic Life Solutions India Ltd, who added that rapid shift to drive automation has started to happen in the industry.
Rahul Sharma, co-founder of Zetwerk said that offering a platform which can bring together manufacturing capacities, customer management know-how, working capital and logistics in a supply chain can be advantageous for the Indian ecosystem amid changing geopolitics that were necessitating local manufacturing of components and sub-components besides end products.
Ravi Bhatkal, managing director, Element Solutions Inc, said that investments into component fabrication, printed circuit board assembly semiconductor packaging and semiconductor were in the process of coming into the country, which would facilitate high-value manufacturing.
The direct-to-consumer concept was forcing traditional manufacturers to adopt cutting edge technology like analytics, AI, and how to learn about consumers, said Pramod Mundra, EVP and CIO, Havells, but noted that the D-to-C players were also venturing into offline markets which has been the turf of manufacturers. “The convergence has already started happening. The players who learn the other part of the trade quickly will eventually emerge as winners,” he said.
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First Published:6 Mar 2023, 12:10 AM IST
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