The global economy is changing. Supply chains break down and entire sales markets are no longer available. Companies are forced to reorient themselves and adapt their production locations and sales structures.
We are currently increasingly aware that companies are recognizing India's role as an international, growing and sustainable market and, above all, as a production location. We are increasingly looking for suitable properties for companies in a wide variety of industries: mechanical engineering, plant engineering, automobiles and the chemical industry.
A development that makes us happy. But this doesn’t have to make sense for every company. Therefore, the potential advantages and disadvantages of own production in India must always be examined individually. One feasibility study For example, provides real feedback from the relevant market and can prevent fatal wrong decisions.
Is the product suitable for the Indian market?
Before you start looking for a suitable location, you should also take a close look at the product - especially if you not only want to get into production, but also into sales.? Often have to Product adaptations developed and implemented to increase the chances of success. Not every product can be adopted 1:1 from the European market. After all, we are not dealing with the same target customers in India. Consumer behavior, culture and needs play a major role. Regardless of the size of the company and product range - yourself large corporations like Ikea first research the market and adjust your product selection before conquering the market.
Indian customers want European quality and reliability, but are often satisfied with significantly fewer functions and less complexity (“frugal innovation”). This means that international manufacturers develop simpler products specifically for the middle market segment in India and then produce them locally. Very often, these products “designed and made in India” then work extremely well in other emerging countries and are later exported to Africa or Southeast Asia.
The ideal location – which criteria are important?
The search for a location and, above all, a property is not only a crucial step in setting up your own production and/or sales structures, but also the foundation for further company development in India. The choice of location cannot be decided arbitrarily. Some facts play in one Location analysis a crucial role:
- Infrastructure: energy supply, transportation, social structure, potential suppliers, surrounding industries
- Staff: Availability of workers, employees, managers and local fluctuation
- Costs for land, energy supply, personnel, conversions and new buildings And, last but not least, the geographical proximity to customers and suppliers
Only then does the search for suitable properties begin and the support of the entire purchase or rental process. You often also need special approvals and permits such as construction and production permits or export licenses. When building a new plant, selecting an architect and the suppliers of the trades is also an important task. We support companies throughout the entire production setup in India.
Risk minimization instead of naivety
As a transparent sparring partner, we help prevent wrong decisions and minimize risks. With proven methodological expertise and a foresight that covers not just the next step, but the entire production structure, we recognize critical developments at an early stage and can counteract them.
Our many years of experience in India with a large number of companies, which we have helped to set up production facilities or even to decide against setting up, confirm our approach. The focus is on the needs and sustainable success of the companies we support.