Local Production

Why produce in India? In order to not only appeal to a minority.

With respect to technological standards, products „Made in Europe“ are often vastly superior to Indian products, but also correspondingly expensive. Therefore they merely address the top and extremely small niche of the wealthiest customers, the most international companies etc., which presumably only accounts for 1-2% of the whole market. The real growth, however, is taking place in the Indian middle class. And mostly the customer needs of this middle class are hardly satisfied by European products: too costly and too difficult. That is not only valid for the B2C business, but also for the B2B business!

The sole price issue can often be alleviated by a local montage i.e. purchase of local components, among others by cutting down costs for logistics and customs.

Yet, in order to reach a wider range of customers and thus gain a solid footing in the Indian market, the products often have to be specifically adapted to the needs of Indian customers. Since Indian customers want European quality and reliability, but are usually content with fewer functions and less complexity. That’s why a new trend has come up in recent years: the so-called „frugal engineering“, where European manufacturers specifically develop products for the mid-market segment in India and produce them locally. This approach is the more interesting as the new products are also suitable for markets other than the Indian: further emerging markets in Asia, Africa, South and Central America.

  • Evaluate a potential local production with its entire advantages and disadvantages on feasibility.
  • Analyse the potential of product adaptations for the Indian market together with you i.e. your developers and with the active involvement of existing customers and prospects.
  • Define appropriate site within India and buy/rent property.
  • Obtain necessary permissions for production.
  • Planning all important processes and monitoring the entire process, not only until the start of the production, but also during the initial phase. Regular performance assessment.

Feasibility study on the planned montage /production steps, incl. planning of finances and organisation.

Assessment of your productsʼ suitability for India and, if necessary, planning of product adaptations. Collecting feedback and opinions from the market on the planned adaptations. Supporting your planning steps with Indian know-how.

Location analysis. Searching suitable property and supporting the entire purchasing / rental process.

Receiving necessary permissions to build up the production (e.g. building permission, production permission, export licences etc.)

Support during the entire project planning and its implementation by qualified managers.

Contact our production experts!