O’ Manufacturing!

Manufacturing, when I was growing up professionally, was largely a looked down on the sector.

It, mostly, was Capex intensive. You had to invest in the making; options to outsource was limited.

It, mostly, was working capital intensive. You had to keep producing and selling whether there was “quality” demand or not. Hence, the smaller ones gradually got stressed.

There was hardly any non-linear growth. You were a prisoner of your capacity and qualifications.

We, at OfBusiness, see this world view fast-changing as we set out to capitalize on the new manufacturing-oriented India.

Capital intensity is fast going down, as manufacturers want to increasingly stay as manufacturers, close to their core competency. Thus, contract manufacturing is flourishing. Banks and the authorities, on their part, are increasingly supportive of capital investments.

Manufacturing aids “real” value add. Hence, better margins and someday, we may charge a premium too (when our brand is built).

Geo-political trends are making India an increasingly strategic destination. It may be our watershed moments like the ‘60s Japan, ‘80s Korea and ‘90s China.

It is our big opportunity to give back as we create jobs for the deserved and needy. A venture without large societal impact ain’t a success yet.

Read more from CEO speaks Column:-
– Pyramid vs. Pillars!
– Patience, The Virtue