Indian Prime Minister Mr. Narendra Modi has given a slogan “Make in India” that should be popular in world and should be visible in every corner of the world. There are two aspect of this vision, 1. Outside companies go to India and setup their manufacturing units 2. Indian companies expand their market reach and expand their current manufacturing in India to support the new demand. Let’s look at both angles..
It is fact that China is by far the largest manufacturing hub in the world. China has manufacturing of almost all categories of consumer and industrial products. It may be challenging to compete directly with China in order to get the manufacturing unit if the finish goods is mainly for the world market and not for India. The reason for that is that since China has been in manufacturing facilities since long so it has created whole ecosystem for entire supply chain. The only reason why an outside company comes to India for setting up a manufacturing unit is (A) It has Indian domestic market as their demand or it can create a demand in Indian market (B) Indian governments, both federal and state government gives an advantage that China cannot provide. As we know that it will be challenging to provide any added advantage compare to China. Hence in this case there is only option to attract manufacturer is to help them grow their demand in Indian market. This is something that Indo American Market Gateway is actively working on since long and helped companies to establish their market in India.
2. Indian companies expand their market reach to other countries
This is possible but it requires fundamental change in thinking by Indian manufacturer. Indian companies inherently thinks for the short term and does not look beyond the fences. To put this in perspective we have to analyze some of the well-known US brands and vision behind it. If we analyze major brands then the common denominator is that they had a long term vision from the beginning and have invested significant money and effort in building brand and loyalty. This can be visible if you visit Hershey’s park in Pennsylvania. It’s merely a chocolate brand but in Hershey park town you can see thousands of people visiting factory and facility like a religious place for worship.
Currently if you see popular brands in USA then you cannot find a single brand that is originated in India. Small country like South Korea has more popular brands in USA like Samsung, LG, Hyundai, and KIA. Indian companies are exporting their products to North American market but those are mainly aimed at the ethnic population of south Asian origin. There is no sincere effort made by any Indian company to break out of the ghetto and sell their products in the main stream market. Recently I had a talk with one of the biggest financial tech city project in India. While they claim to be the biggest self-sufficient hi-tech city in western India and hope to get the world class financial companies as their tenants but does not have a small budget for organizing seminar in world’s largest financial market New York! You cannot make impact in world market just by designing a plan. Small city like Dubai is making much impact in developed countries and attract more investors, just by right marketing strategy and long term vision. Mahindra and Mahindra is the only brand which is making efforts in this direction and with the dynamic leader like Anand Mahindra, it can one day be in the list of real “Global” Indian companies which originated from India. There should be a systemic efforts on part of Indian government to encourage entrepreneur like Anand Mahindra in India so that they can fuel “Make in India” by expanding their market.