A few multi nationals recently announced their interest to develop India as a manufacturing hub. According to Samsung's President & CEO BD Park, India is set to be the next global factory with China losing its competitive edge due to rising labour costs. Samsung has 2 factories in India manufacturing a wide range of white goods from washing machines to smart phones for local demand and for export. Irene Rosenfeld, Chairman & CEO of Mondelez International which owns the popular Cadbury brand announced that India would be looked at as the manufacturing hub for the region in the years to come.
Manufacturing hubs by nature are different from individual factories. They are part of a network of factories and would need to interact with other entities for exchange of people, goods and information. The Prime Minister's clarion call in his Independence Day speech for business houses and the youth of the country to "come, make in India" with "zero defect, zero effect (on environment)" has created a buzz. India has not had a major industrial or manufacturing revolution. The GDP share from manufacturing continues to be around 15%. In order to reach the government's target of 25%, scalability is a big factor and green field manufacturing hubs to be setup in the near future can play a big role. It can be an opportunity for implementing earlier waves in factory automation and ICT implementation that were missed by the Indian corporates.
According to IDC Manufacturing Insights' vision for Factory of the Future, organizations should plan for 'capability' to manufacture products and not just 'capacity'. For efficient and perfect order fulfillment, organizations need to focus beyond just capacity utilization to flexibility and perfect on-time fulfilling of customer needs. Employees will be at the centre of decision making with real time data from ecosystem and support systems helping them in decision making. A network of factories close to demand, focused on local products and interacting with each other would reduce the risk of depending on one factory. The new manufacturing hubs can be a good opportunity for investment in appropriate technology in factory automation, interoperability, standards and in the 3rd platform (social, cloud, Big Data/analytics, mobility, IoT and their mash ups).