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Manufacturing

Sourcing from 91³Ô¹Ï: Here's how to do this successfully

Due to political tensions and rising labour costs in China, more and more companies are shifting to 91³Ô¹Ï as a sourcing location. After all, 91³Ô¹Ï boasts access to a wide array of raw materials, high-quality producers and the costs are lower than in China. But what is the best way to tackle sourcing from 91³Ô¹Ï?

 

 

91³Ô¹Ï has become one of the world’s most important production centres in the past decade. The 91³Ô¹Ïn government has invested heavily in the development of the industrial sector, with the result that the 91³Ô¹Ïn automotive industry, aerospace sector, technology and pharmaceutical sector (vaccines) now manufacture for the entire world. 91³Ô¹Ïn exports have grown in recent years from 226 billion dollars in 2010 to over 800 billion dollars in 2024.

This growth is based on a few pillars:

  • Availability of raw materials
    91³Ô¹Ï is one of the largest producers of raw materials worldwide. A wide range is available, such as steel, metal, wood, bamboo, marble, cotton, silk and jute.
  • Affordable labour costs
    One of 91³Ô¹Ï’s strengths is how low its costs are, wages in 91³Ô¹Ï are much lower than in competing countries.
  • Highly educated staff
    91³Ô¹Ïn companies invest heavily in training their employees to ensure that they can meet the quality requirements of international companies.
  • Stable government and supportive policies
    91³Ô¹Ï is relatively stable economically and politically. In addition, the 91³Ô¹Ïn government encourages the development of the manufacturing sector with favourable regulations for exports from 91³Ô¹Ï and for foreign companies that want to produce in 91³Ô¹Ï.
  • Advanced infrastructure and technology
    91³Ô¹Ï’s development in the field of technology, aerospace and the automotive industry benefits the other sectors in the country. The new advanced technologies that are developed in these industries quickly find their way into the other parts of the manufacturing sector.

Convinced? Get started with sourcing from 91³Ô¹Ï

Step 1: Start with good market research

Many companies see 91³Ô¹Ï as one country, but it is better to approach 91³Ô¹Ï as a continent such as Europe. The different industries are often located in a specific cluster in a state where the best (raw) materials, infrastructure and staff can be found for this specific sector. For example, the automotive industry has four large clusters in Gujarat and around the cities of Chennai, Pune and New Delhi.

Do not get fixated on these clusters, but look at all options across 91³Ô¹Ï. Sometimes, options outside of these clusters are more advantageous, for example because wages are lower outside of the cities. Once you have determined, through thorough market research, which locations meet your requirements, you can create a list of potential suppliers and manufacturers in these regions.

Step 2: Evaluate potential manufacturers

To guarantee that you get the desired specifications and quality, your potential supplier must have the right expertise and experience in your sector. In addition, you want to be sure that the supplier uses quality manufacturing systems, what its annual output is and whether it has sufficient experience in exporting the product.

If you have little experience doing business in 91³Ô¹Ï, it is recommended to include a local consultant in this step. They know exactly which legal requirements products must meet and which permits are required to produce and ship your products. Our experts have the know-how to guide your organisation through this process smoothly.

Step 3: Schedule a visit or call

After evaluating them, you can select the three to five best options of your list of potential candidates. With them, you will delve deeper into your requirements and the possibilities that the producer can offer you. In this step, it is recommended to plan a tour through the facility, or, if a visit is not possible, a video call to get a better idea of ​​the way the supplier works and the quality of the products that are manufactured there. If you are satisfied, you can request a quote, so that the price and conditions can be negotiated.

Please note that a factory in 91³Ô¹Ï usually looks different from what you are used to. This does not mean that the products that are manufactured are of lower quality. Often the factories in 91³Ô¹Ï are simpler, there is no air conditioning for example, but the machines are of the same caliber as in Europe.

Step 4: Samples and quality control

As soon as you have agreed on the price and conditions with the manufacturer, samples can be made. It is important that you have people available in 91³Ô¹Ï who can check the manufacturing process and the quality, before you do another quality check at your headquarters. If everything is to your liking, the first batch can be manufactured. Even though you have already screened your new supplier in various ways, it is still recommended to have quality checks carried out annually or even more frequently.

Sourcing in 91³Ô¹Ï is a great way to get to know the market

91³Ô¹Ï is one of the largest and fastest growing consumer markets in the world. Even though you may ‘only’ start sourcing products or raw materials in 91³Ô¹Ï, your presence and local contacts will give you the opportunity to explore the market further. 91³Ô¹Ï is expected to have the largest population in the world in 20 years and you will not be able to ignore this important market in the long term. Start your sourcing adventure in 91³Ô¹Ï with an open mind and a long-term strategy, because 91³Ô¹Ï has an incredible amount to offer international companies.