India: A Global Manufacturing Hub; What Should Stake Holders do?

Group Members

1. Tarun Rohra

2. Himanshu Phatnani

3. Yogesh Prajapati

4. Atharva Nandurdikar

5. Atharva Ponkshe

Mentored by: Prof. Monali Chaudhari

Overview:IntroductionMajor Manufacturing Industries in IndiaRole of Stake Holders In Textile IndustriesGMCI ReportWeakness of Indian Manufacturing SectorRole of stake holders in making India a Global

Manufacturing Hub

What is a Manufacturing Hub ?

Definition:A country which produces goods in acceptable quality,

quantity with efficiency that it becomes global center of that production activity.

It is with respect to a particular industry.

What Makes a country Manufacturing Hub ?

Conducive policy environment

Encouraging or directly funding investments in science and technology

Employee Education

Infrastructure Development

Implementing Automation

What is a Stake Holder ?

Stakeholders are those who have an interest in what an Organisation or particular sector of economy is doing because they will be affected or may influence its activities.

Who are the stake holders of a Company ?

Difference between stake holder and stock holder

Stock Holder Stake Holder

A stockholder owns part of a company through stock ownership.

A stockholder has financial interest in company.

A stakeholder may or may not own a part of company.

A stakeholder is interested in the performance of a company rather than just stock appreciation.

Major Industries in IndiaIndia can be called a Global manufacturing hub for the industries like:

TextilesChemicalsFood ProcessingSteel MiningPetroleum

Role Of Major Industrial Sectors In Indian Economy

Textile Industry:Second largest employment generating sector in India.Employment to over 35 million.Contributes 4 % to GDP & contributes 35 % of the export

earnings.

Food Processing:Major food producing country.Accounts 1.5 per cent of international food trade.Projected to grow to 37 million, by 2025.

Steel Industry:Recorded a growth of 4 per cent and reached 28.3 million tonnes.4th rank all over the world.Provides employment more than 0.5 million.

Mining Industry:• Share in India's GDP is 2.5%• Contributes to 10-11% in industrial sector's GDP.• Mining sector employs nearly 0.7 million people.

Role of stake holders in the Indian textile industry

GovernmentGovernment of India has launched a Technology Mission

to improve the productivity, quality reducing the cost of production

R and D on cotton for genetic improvement of cotton, resource management for quality cotton production

Training the farmers with effective farming methods

Providing financial assistance to factories for modernization and acquisition of latest machinery and equipments.

EnvironmentLargest area under cotton cultivationClimatic conditions favourable for cultivation

EmploymentTextile industry in India is Second largest employment providerAccounts to 14% of Industrial prod , 5% of GDP , one third of total

exportsLargest net foreign exchange earner.

ConsumerConsumption ratio in IND is 2:1 in favor of cotton , in contrast to 3:4 for

rest of world.

Weaknesses of Indian Manufacturing Sector

INFRASTRUCTURE

HUMAN RESOURCES

POWER RAILROADS

NATIONAL

HIGHWAYS

SHORTAGE OF HUMAN CAPITAL

HIGH TURNOVER

INFLEXIBLE LABOUR LAWS

Comparing with China…India is famous for their quality driven approach, but

China has quantity driven approach.India has high costing compare to low costing by

China.India has more stringent laws than China.

Let’s discuss a comprehensive

Policy

Delhi-Mumbai Industrial Corridor

Role of other stakeholders in thisInternal

stakeholdersRole

Employees • Keeping themselves updated about current requirements of manufacturing sector

Managers • Guiding employees in regular meetings

• Arranging seminars to keep employees apprised of current status of manufacturing sector

• Organizing workshops to update specific skills

Owners • Maintaining healthy work environment

• Extracting feedback via ‘Open Door Policy’

• Maintaining harmonious relations with other organizations and government

External Stakeholders

Role

Suppliers • Providing ‘just-in-time’ supply• Ensuring the quality and

quantity of raw material• Ensuring proper distribution

Society • Paying taxes regularly• Keeping themselves abreast of

current scenario• Providing reviews and feedbacks

via social media

Creditors • Understanding the need of the manufacturing industry

• Keeping interest policies fairly flexible

Shareholders • Active participation in deciding company’s policies to enhance company performance

Customers • To give feedback to the company on their products and performance

Referenceswww.ibef.orgwww.economictimes.comwww.wikipedia.comwww.global-innovation.net

Thank you!