Cos making beeline to set up plants as PM Modi launches campaign to encourage manufacturing in the country
Elephant turns lion
Bosch Siemens, Sony India and Barry Callebaut are set to launch or have expressed interest in setting up a manufacturing base in India
Bosch Siemens will open its first India manufacturing facility in Pillaipakkam near Chennai early next week
Cargill India is setting up a corn milling plant with an investment of about Rs 500 crore at Davanagere in Karnataka
The 'Make in India' campaign by Prime Minister Narendra Modi seems to have come at an opportune time.
Since it was first expressed on August 15 by the PM in his independence day speech, a number of international and domestic businesses have expressed intentions or are in the process to set up shop here.
Earlier this week, Kishore Biyani, CEO of Future Group, forayed into food processing industry by launching a big food park at Tumkur near Bangalore, foraying into food processing industry.
Incidentally, the 'India Food Park' as it is called was also inaugurated by PM Modi who stressed on the need for more such facilities that will work towards uplift of the Indian farming and entrepreneurial community.
According to Biyani, the facility is likely to generate over 10,000 new jobs and entail investment of Rs 1,000 crore in a few years.
A few global majors like Bosch Siemens Home Appliances (BSH), Sony India and Switzerland-based chocolate maker Barry Callebaut are set to launch or have expressed interest in setting up a manufacturing base in India.
In fact, BSH will open its first India manufacturing facility in Pillaipakkam near Chennai early next week.
Karsten Ottenberg, chairman of the board and CEO for home appliance, BSH, is said to be pushing for consumer durable majors efforts in India.
The company has invested $60 million to set up the India manufacturing unit and will open more brand stores in the future.
Chocolate maker Barry Callebaut that only had commercial operations in the country is planning to set up a manufacturing unit.
"As part of our expansion plan, we're looking at having a manufacturing plant in India in near future and we are progressing on the plan," Denis Convert, vice-president gourmet Asia Pacific, said.
India definitely has the capability, inclination towards innovation and the skill sets, feels Sunil Mathur, CEO, Siemens India while also urging the world to come and make in India.
"We start with an idea and then work backwards to develop state-of-the-art manufacturing facilities. This enables us to do things quicker and better than anyone else. Additionally, being a young country, we have immense raw talent which can be tapped and developed into a skilled workforce. Subsequently, manufacturing activities are carried out by highly-skilled people who are completely motivated to deliver best quality products at competitive prices," said Mathur.
Welcoming the recent initiative by the Indian government, Kenichiro Hibi, MD of Japanese electronics giant Sony India was quoted saying that it may finally re-establish a factory in India as the company was enthusiastic about making the country a manufacturing base. Sony's decision appears to be motivated from success its Korean rivals, LG and Samsung, are enjoying significant advantages with domestic manufacturing.
Food products firm Cargill India is setting up a corn milling plant with an investment of about Rs 500 crore at Davanagere in Karnataka and the unit is expected to be operational from next year. "It is a Rs 500 crore project spread across 44.5 acres land in Karnataka. The facility is under construction and will commence operation from September 2015," Cargill India director and business head (grains and oilseeds crush) B K Anand said.
India desperately needs to grow its shrunken manufacturing sector, feel industry experts. This is essential to create jobs for its huge population, particularly the youth to prevent the demographic dividend from becoming a social disaster.
"Hence the Make in India campaign is critical," says Harish H V, partner, Grant Thornton India LLP.
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