India is increasingly emerging as a hub for global sourcing. Almost every multinational company is focusing on India. It is generally agreed that, India as a low cost country sourcing market is one of the most interesting but also challenging markets in the world. This trend not only pertains to FMCG products but across all industries. India is among the world’s top three suppliers of home textile products. Almost 80% of its US$1.2 billion worth of exports annually is shipped to the US and the EU. Knowledge-based manufacturing has put India on the global sourcing map with multinational companies increasingly positioning the country as a low-cost, high quality sourcing hub for products ranging from consumer electronics to toothpaste and boilers to printing machinery.
Wal-Mart’s sourcing operations were estimated at $1 billion, Tesco around $100 million and Marks and Spencer around $145 million. Unilever sources majority of their FMCG products from their Indian subsidiary Hindustan Unilever Limited. Some other companies who are either planning to set up manufacturing units or expand their sourcing from reliable suppliers in India are Amway, GAP, Newell Rubbermaid (Makers of Parker Pens), Adidas, Next and Calvin Klein. Other than Textiles and FMCG, India has emerged as one among the top two sourcing hubs for the global pharmaceutical industry. Some of the major drivers for the sourcing activity are low cost of raw material, low labor cost, highly skilled labor, high quality products, low R & D cost, bulky export and Government Policies. From FMCG to Aerospace, India is set to grow in a phenomenal pace as a global outsourcing hub.
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