India Localization – Unleashing the Potential

India Localization – Unleashing the Potential

India’s growth story in the manufacturing sector has been driven by its billion-plus demographic and their rising spending acumen. Manufacturing sector in India today contributes 17% to the GDP and not only caters to domestic consumption but the meteoric growth in exports as well. This rise has turned global eyes towards India as a ‘China Plus One’ destination. Government Schemes and a well-developed manufacturing ecosystem have augmented the impact in attracting global firms to invest in India.


India’s manufacturing ecosystem has developed over the last 10 years primarily due to the rise in demand clusters across the nation. Global firms who penetrated the Indian market over the past decade have tested the waters through their distribution, sales and Company Owned Company Operated (COCO) Model and then further established their manufacturing bases in India. As a result, their manufacturing spruced up eventually and India is now a key log in their global supply chain and one of the major export hubs.

While India offers vast opportunities, it is also a diverse and developing country comprised of numerous micro-markets. Understanding these dynamics is a challenge for MNCs. Global firms who want to enter or expand in India face several hurdles: objectively quantifying the opportunity, establishing a supply chain, finding relevant supplier partners, and obtaining certifications.

EAC has a proven track record of assisting multinational companies (MNCs) in navigating the complexities of the Indian market. Here are a few recent examples:

A global sanitation player from Germany faced high opening costs in India due to import reliance. To address this, they approached EAC and explored setting up assembly operations in India. This strategy aimed to localize the value chain, thereby reducing opening prices, expanding market reach, and countering competition. EAC provided the company with scenario-based assessments to validate their sales volume projections in India. These assessments considered factors such as the realization of expansion plans for the sales network, the competitive landscape, and the impact of reducing opening price points. Additionally, EAC assisted in selecting a suitable location for the new investment.

Another successful collaboration involved a leading construction materials manufacturer seeking a deeper understanding of India's construction sub-segments and their projected growth. EAC provided them with transparent insights into the evolution of demand pockets and potential supply chains. Additionally, EAC recommended the ideal location with the lowest delivered cost to support their transition into the Indian market.

An international manufacturer sought to localize their supply chain in India by attracting Indian, Chinese, and other overseas suppliers. Their primary goal was to reduce reliance on Chinese imports and minimize potential future supply disruptions. To achieve this, EAC assisted them in identifying global suppliers, contract manufacturers, and developing an India localization and implementation roadmap to set up an India manufacturing center.

As companies navigate the complexities of the global business landscape, shifting manufacturing operations to India emerges as a strategic approach to securing long-term competitiveness and sustainable growth. Global firms seeking to capitalize on India's rising consumer demand and diversify their manufacturing footprint can leverage India as the new manufacturing engine. EAC is primed to be your guide on this journey.

EAC Principal Rituraj Shailendra and Aarya Kadam will be glad to share their thoughts and ideas with you in a strategic conversation on India localization.