Huge Scope For Manufacturing In India
In India, there are several types of companies, one of which is a manufacturing company. Economically, manufacturing companies in India absorb a lot of workforces so as to help improve the welfare of the people.
As is well known, the Indian economy is divided into three sectors according to their activities, namely the primary sector, the secondary sector, and the tertiary sector. Of course, these sectors are related to one another.
The primary sector provides raw materials through the extraction and collection of natural resources. This sector includes agriculture, forestry, mining, and fisheries.
Meanwhile, manufacturing companies in the secondary sector produce finished products that can be used or involved in construction. The tertiary sector is a sector that covers the service industry, its activities include the transportation, distribution, and sale of goods.
Manufacturing companies are known as companies that provide products needed by the market. The greater the market demand, the more production processes will be carried out by the party.
The production process in these companies will involve various factors. Starting from human resources, natural resources, to large machines.
Because it sells a product, this business activity can be categorized into a trading company. Then, what exactly is a manufacturing company?
The definition of a manufacturing company is a business entity that converts raw goods into semi-finished goods or finished goods that have a selling value. In the processing process, the company operates machinery, equipment, and labor in one medium.
All processes and stages carried out in manufacturing activities refer to the Standard Operating Procedures or SOPs that are owned by each work unit. In India, companies engaged in manufacturing are often referred to as factories.
In English, the term factory is also called a factory which refers to a place description. This factory or factory is indeed used as a designation for a place used for the manufacturing or fabrication process.
In India itself, there are several areas designated as industrial areas, such as Mumbai, Pune, Gujarat & Bangalore. However, it is possible that other regions in India will also be available.
Definition of Manufacturing
Technically, manufacturing is the processing of raw materials through chemical and physical processes that aim to change the shape, properties, and appearance of the product. Manufacturing activities include the process of assembling several components into a complete product.
The definition of manufacturing economically is the process of transforming raw materials into a form that has added value through one or more assembly processes. So that the expected end result is the formation of products that have a sale value.
In general, manufacturing has several stages of operation and each stage of operation brings the raw material closer to the final form.
Scope of Manufacturing Company
Talking about the scope, what is meant is what business fields are included in this manufacturing sector.
The manufacturing industry is divided into several types of companies that are engaged in various fields such as basic and chemical industries, various industries, and various consumer goods.
The following are some examples:
1. Basic Industry and Chemicals
Companies classified as basic and chemical industries are companies engaged in the production of cement, ceramics, porcelain, metals, chemicals, plastics,
animal feed, wood and processing, paper, and so on.
2. Various Industries
Companies belonging to this type are companies engaged in machinery and heavy equipment, Automotive and its components, textiles and garment, footwear, cables, and Electronics.
3. Consumer Goods Industry
Included in the consumer goods industry include companies engaged in the production of food and beverages, cigarettes, pharmaceuticals, cosmetics, and household appliances.
It could be that there are other areas that fall into the manufacturing sector, such as the manufacture of ships and planes, the engineering business, and so on. However, some of the examples above have illustrated that people’s lives today really depend on them.
Manufacturing Industry in India
India’s manufacturing industry has managed to reach the top ten rankings in the world. This position is expected to increase in line with the establishment of national industrial priority policies.
India has become the largest manufacturing industry base in ASIAN with a contribution reaching 20.27% to the national scale economy.
The development of the manufacturing industry in India is currently able to shift the role of commodity-based to manufacture based.
The government is trying to transform the economy so that it is more focused on the process of developing the non-oil and gas industry.
Quoted from the website of the Investment Coordinating Board (BKPM), the manufacturing industry is considered to be more productive and can have a broad chain effect so that it can increase the added value of raw materials, increase the workforce, produce the largest source of foreign exchange, and the largest tax and customs contributor.
The Ministry of Industry also noted several sectors that had a performance percentage above GDP nationally, including the base metal industry at 9.94%, the textile and apparel industry at 7.53%, and the transportation equipment industry at 6.33%. This is also influenced by the increasing purchasing power of people for various types of products so that the production process will increase according to demand.
Various Indian manufacturing sectors have also been developed in other ASIAN countries, such as the Philippines and Vietnam. This will of course encourage national economic growth and increase competitiveness domestically, regionally, and globally.
Another difference that the Indian economy has is its strength in the domestic market with a percentage of 80% and the rest is an export market, unlike Singapore and Vietnam whose economic systems are largely export-oriented.
Tips for Developing a Manufacturing Company
Getting into a business in manufacturing is very risky because you are required to understand the target market on a high scale. This type of company is focused on large production numbers. There are several key factors that must be done if you want to be in this business.
A small product stock will increase the production cost or capital required. That is the reason why before planning to create a manufacturing business, a market strategy must be considered. The goal is to maximize the benefits you get.
2. Quality Control
If a business’s products are not made of quality, a company will arguably not be able to survive. What’s more, there are already many companies that are able to create products at lower prices but are still able to maintain the quality of their goods. That is what many companies in China are developing.
3. Best Design
A company engaged in manufacturing must compete with competitors. The best design is an absolute advantage so that the company can win the competition. For example, Apple made a white hands-free, even though the cable used to be very annoying.
In the end, the hands-free in white was able to dominate the world market and Apple made a big profit because of the courage to issue a design that was different from its competitors.
4. Good Financial Management
Business finances are one of the most important factors in influencing the success of a business. Companies must think about how to manage capital, income, and production expenditures to generate maximum profits.
Manufacturing industry financial records are slightly different from trading and service companies. This is because it contains a report on the Cost of Production. The cost of production is used as the main financial report for manufacturing companies.