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One can have a factory for manufacturing electronic components and even the Know how
for their manufacture and training for free. One needs to convince the plant owners that you
have the capabilities to run their units profitably in India and supply the produce to them. One
of the manufacturers now has several plants running in Northern -India for making and exporting
capacitors . The cost of production in most western countries has become too high. As a result,
They are unable to compete with companies from countries like China, who are able to provide
these components at a much cheaper rate. So they want to encourage countries like India,
where labour costs and land in remote areas particularly are much cheaper than in their own
countries,to make up their manufacture. If an Indian company is able to provide them a
component for 30 cents when their own cost of manufacture is 50 cents ,they are more than happy and relieved of any botheration to manufacture. The Indian company could be producing
the component for just 20 cents and making a good profit margin of 50%.
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| Posted : 10/18/2005 |
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