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Let us keep aside Tata and Mahindra which I Wish to discuss and read the following article Written by an Loudspeaker designer from calcutta (Hunter Audio » Home)
Hi
I have got this question from many people here at diy –
Why don’t we see many – Made In India products around ? Like China , Taiwan & Korea
( This note concerns common consumer electronics and general market place goods )
I need to treat this question as a broad one ,
I have been to Taiwan – Korea & China – That too quite a few times ( not to source anything from there ) , just been there –
I have seen my country in the 80 s & now it has changed , Most expensive equipments are Defense Equipments ,
India has an island called Andaman & Nicobar , it is situated right at the gates of Malacca Straits
We have a huge Naval & Air force base there – With it India can control the entire trade from South East Asia – It is like Gibraltar of Mediterranean – This entire base disappeared in the Tsunamis
While other countries were contemplating on the amount of aid to ask the international communities and have bad loans written off – India announced we don’t need any outside help or aid – monetarily
Yet we are apparently not manufacturing anything ?
No that is wrong – infact we are manufacturing – but ?
The Indian Market and Population is so large that we are catering to our own need
Just the heavy good s vehicle industry is growing by 33 % each year – that’s huge - and more or less each & every truck in India – is made in India
Where of more or less every 2 nd heavy vehicle in U.S. , the chassis is forged in India by – Bharat Heavy Forge ( The second largest forging company in the world )
Every thing in India is – Made in India – and it is a huge number of products
Now I need to Club – Korea & Taiwan – together – Very small countries with a huge production capability – They need to sell – elsewhere to absorb this produce – Therefore the huge export of materials from these two else-where
Then you may say China is similar to India
A mass market – Yes a mass market But not similar
this has been one of my reason to travel to China to find out
1 st
Chinese market – initially had been guarded before they opened up – and when they did open up – the people took to all the products being used in the west – they were waiting for Wrigley’s chewing gum – and they just accepted it – same with the digital cameras and mobile phones etc
Then they went in for mass production of these itmes – Chinese people have & use all the latest gizmos that they are exporting – all over the world
( one needs to produce in numbers to keep the pricing competitive )
India being democratic – has set up its own type or identity of product need – Wrigley’s has not done well at all here though other mouth fresheners are booming (local ones & types)
The product we make even in mass scale is mostly for the very large Indian market
Now this Indian produce is not compatible to the requirement of other markets over a broad spectrum of items
2 nd
Indian business is mostly running on individual entrepreneurship and tenacity during the rough times of business – hardly – or very little government help – to mostly non at all – we don’t get access to loans – you can say non at all – till you have become a middle level entity
An Indian wanting to manufacture an Item for export will not be able to raise the funds – unless he is already doing well selling products in the Indian Market – To become a middle level busness house
to reach that middle level identity where the banks will be interested to shell out loan one has to make products required by the Indian market – And this is a vicious circle as this is not compatible to the out side world
For eg . To make a good subwoofer will cost about 80 Usd here - which will include - low inductance edge wound vc - , Non - Press reinforced cone - Large roll Surround - Nomex or similar silicone impregnated heavy duty spider - dual mag motor structure in a under - hung motor structure (with certain improvements)
if i produce this in larger numbers it will be cheaper - even if i process 100 pcs at a cost of 65 usd i will have to invest 6500 usd and when completed - i will have to break my head and involve more money to market it or fright forward it as there are not many takers for this type of a subwoofer - which will be rated at about 300 w rms
These are the various macro and micro problems stopping Indian products reaching outside – whose quality I rate as good as any in the world
Then how is the Indian Economy doing well ? India exports :-
Heavy Industry & products is doing very well
Service Industry is doing very well
Pharmaceuticals is doing very well
Bio – Tech is doing very well
BPO is booming
Garment s & textiles is doing well
Petrochemicals is coming up
Now we break down the business of the above – If China goes ahead and makes all the DVD players in the world , - ok fine –
no problems , it doesn’t raise a hair of mine
( taking that India & China is in competition )
The ground reality is there are 1000 s of Chinese companies competing with one another - with a huge produce – selling at the lowest possible price –
that means :-
for all that man – hours - production facility set up – and all the raw materials involved – raw material sourcing and movement – patents – offices – communication - freight forwarding – and delayed payments – you have made a wee bit of profit
While in India a college kid sitting at a – call center in his off time may make as much profit for India – as much as - a good lot of DVD s will for China
So why in the world will any – one who has got his mathematics and head in place make a DVD player now in this enviornment
But
We Indians should not give up competing or be complacent neither am I attempting to pose our position as a politician
I am in the business of making speakers – Every time I see a Chinese driver my mind automatically focuses in making a similar driver - cheaper & better _
Sooner or later you will find more and more products Made In India
Suranjan Das Gupta
I have got this question from many people here at diy –
Why don’t we see many – Made In India products around ? Like China , Taiwan & Korea
( This note concerns common consumer electronics and general market place goods )
I need to treat this question as a broad one ,
I have been to Taiwan – Korea & China – That too quite a few times ( not to source anything from there ) , just been there –
I have seen my country in the 80 s & now it has changed , Most expensive equipments are Defense Equipments ,
India has an island called Andaman & Nicobar , it is situated right at the gates of Malacca Straits
We have a huge Naval & Air force base there – With it India can control the entire trade from South East Asia – It is like Gibraltar of Mediterranean – This entire base disappeared in the Tsunamis
While other countries were contemplating on the amount of aid to ask the international communities and have bad loans written off – India announced we don’t need any outside help or aid – monetarily
Yet we are apparently not manufacturing anything ?
No that is wrong – infact we are manufacturing – but ?
The Indian Market and Population is so large that we are catering to our own need
Just the heavy good s vehicle industry is growing by 33 % each year – that’s huge - and more or less each & every truck in India – is made in India
Where of more or less every 2 nd heavy vehicle in U.S. , the chassis is forged in India by – Bharat Heavy Forge ( The second largest forging company in the world )
Every thing in India is – Made in India – and it is a huge number of products
Now I need to Club – Korea & Taiwan – together – Very small countries with a huge production capability – They need to sell – elsewhere to absorb this produce – Therefore the huge export of materials from these two else-where
Then you may say China is similar to India
A mass market – Yes a mass market But not similar
this has been one of my reason to travel to China to find out
1 st
Chinese market – initially had been guarded before they opened up – and when they did open up – the people took to all the products being used in the west – they were waiting for Wrigley’s chewing gum – and they just accepted it – same with the digital cameras and mobile phones etc
Then they went in for mass production of these itmes – Chinese people have & use all the latest gizmos that they are exporting – all over the world
( one needs to produce in numbers to keep the pricing competitive )
India being democratic – has set up its own type or identity of product need – Wrigley’s has not done well at all here though other mouth fresheners are booming (local ones & types)
The product we make even in mass scale is mostly for the very large Indian market
Now this Indian produce is not compatible to the requirement of other markets over a broad spectrum of items
2 nd
Indian business is mostly running on individual entrepreneurship and tenacity during the rough times of business – hardly – or very little government help – to mostly non at all – we don’t get access to loans – you can say non at all – till you have become a middle level entity
An Indian wanting to manufacture an Item for export will not be able to raise the funds – unless he is already doing well selling products in the Indian Market – To become a middle level busness house
to reach that middle level identity where the banks will be interested to shell out loan one has to make products required by the Indian market – And this is a vicious circle as this is not compatible to the out side world
For eg . To make a good subwoofer will cost about 80 Usd here - which will include - low inductance edge wound vc - , Non - Press reinforced cone - Large roll Surround - Nomex or similar silicone impregnated heavy duty spider - dual mag motor structure in a under - hung motor structure (with certain improvements)
if i produce this in larger numbers it will be cheaper - even if i process 100 pcs at a cost of 65 usd i will have to invest 6500 usd and when completed - i will have to break my head and involve more money to market it or fright forward it as there are not many takers for this type of a subwoofer - which will be rated at about 300 w rms
These are the various macro and micro problems stopping Indian products reaching outside – whose quality I rate as good as any in the world
Then how is the Indian Economy doing well ? India exports :-
Heavy Industry & products is doing very well
Service Industry is doing very well
Pharmaceuticals is doing very well
Bio – Tech is doing very well
BPO is booming
Garment s & textiles is doing well
Petrochemicals is coming up
Now we break down the business of the above – If China goes ahead and makes all the DVD players in the world , - ok fine –
no problems , it doesn’t raise a hair of mine
( taking that India & China is in competition )
The ground reality is there are 1000 s of Chinese companies competing with one another - with a huge produce – selling at the lowest possible price –
that means :-
for all that man – hours - production facility set up – and all the raw materials involved – raw material sourcing and movement – patents – offices – communication - freight forwarding – and delayed payments – you have made a wee bit of profit
While in India a college kid sitting at a – call center in his off time may make as much profit for India – as much as - a good lot of DVD s will for China
So why in the world will any – one who has got his mathematics and head in place make a DVD player now in this enviornment
But
We Indians should not give up competing or be complacent neither am I attempting to pose our position as a politician
I am in the business of making speakers – Every time I see a Chinese driver my mind automatically focuses in making a similar driver - cheaper & better _
Sooner or later you will find more and more products Made In India
Suranjan Das Gupta
