First published in June 2016
India is a massive and complex market with a lot of regulations. To crack the Indian market foreign companies often dip their toe in it by initially importing their products. As soon as the investment makes sense many companies experience a lot of advantages to manufacturing in India – especially now; when a lot of work has been done to help foreign companies to “Make in India”. The chance to open a manufacturing unit in India has already been taken by several firms, such as Huawei, GE and Lenovo. Other companies like Samsung, Boeing and Pepsi are planning to set up or expand their manufacturing activities in India. According to a survey, due to the ‘Make in India’ campaign, FDI inflows have risen 40% during the year after its launch.
While a lot of barriers have been reduced, setting up a local production unit in India still requires strong time and quality management to ensure you get what you need within the time and resources you’ve allocated. Strategic decisions need to be made on the location of your Indian factory and on how to project manage all elements of the construction, registration and hiring & training of the staff for the completed unit.
As with all countries, there are significant differences between a foreign and local Indian approach to all aspects of the work. Without experts who understand both local and international requirements, projects either run over budget and time, or fail to be completed as per the required quality. You need local knowledge to identify a suitable location and buy land. This is also required if you want to plan accurately, navigate the multi-layered bureaucracy and to ensure that all the approvals and registrations are completed satisfactorily – including all the clearances from different agencies to build and operate a factory.
You need to find the right architects, PMC, contractors & vendors as well as to coordinate effectively between agencies working on the project. You also need an international perspective to be able to prepare and keep required timelines, also to explain – and solve – problems as they arise. You need an experienced team on the ground who can manage all aspects of setting up the factory, Technical and Commercial, and M+V has the unique experience to be able to do that. This allows you to oversee the entire process in the most efficient manner possible and liaise with our expert managers on any and all issues.
What Makes M+V so special
Ensuring holistic project management
M+V has the unique Knowledge and Skill to provide an experienced team that can manage all aspects of setting up the factory – both Technical and Commercial. We have the local knowledge to identify suitable locations and buy land, to help clients plan accurately and to ensure that all the approvals and registrations are completed satisfactorily – including all the clearances from different agencies to build and operate a factory. We find the right architects, PMCs, contractors and vendors as well as coordinate between agencies working on the project. M+V acts as a Controller to coordinate for the foreign company with all the Authorities, Contractors, Suppliers, etc. Plus M+V also takes responsibility for the entire administrative / commercial management (Finance / Accounting / Compliance) of the project. Please see M+V’s typical scope of work when setting up a Manufacturing Unit in India.