Low manufacturing costs, coupled with availability of cheap labour are luring UK majors to venture into India’s manufacturing segment
India’s manufacturing sector that has witnessed a significant growth in the last few months is set to receive further fillip, with major UK-based companies engaged in the manufacturing sector eyeing to venture the Indian market via collaboration with Indian firms. According to a survey conducted by Machinist360.com, a whopping 80% of the respondents feel that entry of UK engineering majors will elevate India’s manufacturing sector, whereas 20% of the respondents feel the other way round.
A lucrative market
In this context Kamlesh Goenka, proprietor of Superior Auto Parts, a small-sized auto parts manufacturer in Bengaluru, says, “With the economy on a revival mode, India has become a lucrative market for these foreign firms. Low manufacturing costs, coupled with availability of cheap labour have attracted these firms to foray into the manufacturing segment of the country.”
The Caparo Group in the UK engaged in manufacturing structural steel, spirally wounded tubes, industrial wires etc plans to develop forge and aluminium foundry in Chennai. The company is also looking forward to work with Hindustan Aeronautics Limited (HAL) and other aerospace companies in India. According to Amarnath Chowdhary, managing director of Hightech Auto Parts, a small-scale automotive parts manufacturer in Kolkata, “Coming of the UK majors will bring in the requisite technologies needed to innovate our existing product portfolio. We anticipate that these companies will also enhance R&D activities and competitiveness across various verticals of manufacturing, which will provide the required fillip to the sector.”
VTL Automotive, a UK-based firm engaged in manufacturing automotive components, has tied up with a casting company based in Mumbai to set up a new manufacturing plant in Hubli, Karnataka, which is expected to become operational by the end of 2010. According to the British High Commission, India hosts around 500 UK companies and with the expansion in manufacturing activities, the number is expected to surge in the near future.
Arup Choudhury |
