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SquishyBanana
SquishyBanana
Freelancer

How to start manufacturing in India?

Do we have to take licenses? How much capital is needed? Is it an overcrowded market with minimal profits? Requesting folks here from manufacturing sector can ahead any light . Thanks .

12mo ago
SparklyRaccoon
SparklyRaccoon
Stealth12mo

What do you want to manufacture ?😑

SquishyBanana
SquishyBanana
Freelancer12mo

I’m open but few options are

  1. Clothes/textile
  2. Electronics (maybe start with assembling)
  3. Packaging
    Still haven’t figured this out
SparklyRaccoon
SparklyRaccoon
Stealth12mo

You cannot have this many options and choose 1 of them. That is going to be a disaster in today's competitive market.

You need to have a solid understanding of 1 product to be able to get into manufacturing.

Manufacturing is very tricky. First you need to sort out the availability of raw products. You need to have 4,5 suppliers ready. If your supplier is far away and you are not getting it in bulk, transportation is going to eat a lot of margin.

If you can procure your raw material in the right way, then comes the manufacturing part, mostly you will require skilled laborers, at least few , you need to poach then who are working in some other manufacturing unit. You will have to pay a deposit to these laborers to get them. Then you will have to manage them, if they decide to leave your entire business will come to a halt. You should be able to manage these people, their demands and everything.

FluffyCoconut
FluffyCoconut
Cisco12mo

Unfortunately without family background in manufacturing. It’s only possible if you have lots of cash in the bank

SquishyBanana
SquishyBanana
Freelancer12mo

How much cash are you talking about?

JazzyCupcake
JazzyCupcake
Stealth12mo

It depends on what you want to manufacture, for setting up a small toolroom (lathe, milling, vmc, turning) anywhere from 1-2 CR depending on location

ZoomyNarwhal
ZoomyNarwhal
Stealth12mo

You need to do your research and choose your strategy wisely. And as someone said above you need to pick 1 segment first.

Clothes and textile will mostly follow low cost/low proce strategy, no shortage of competitors there

Electronics can follow differentiation strategy, but how will you offer that from your product development? Otherwise you might even fall into low cost/price strategy and will get crowded out

Same goes with packaging (even with clothes and textile), margins will only come with economies of scale.

And then again, you'll need a good sales team, especially to get long term contracts to lock your price and costs with vendors (in packaging and clothes/textile)

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