Can India Emulate a Chinese Manufacturing Story?
Posted : August 30, 2004 at 9:18 am [IST]
Perhaps in ‘Business World’, August 23 issue had this story about the great stride made by Chinese manufacturing.
“Despite its disastrous foray in India with Baron’s Kabir Mulchandani, TCL is the largest CTV maker in China with a market share of 23.18 per cent.
The visit to TCL’s largest plant at HuiZhou can be a lesson in scale of manufacturing. This plant produces an astounding 6 million CTVs annual. Remember, India’s entire consumption is 8.5 million. And most amazingly the 6 million CTVs are made with just 2,500 people! The plant has automated surface mounting machines that mount electronics on the motherboard without human intervention.
TCL and France’s Thomson have recently merged (67:33 in equity) to create TTE Corporation, the world’s largest CTV maker with annual sales of 18.5 million CTVs (the second-largest CTV maker is only two-thirds its size). TTE is now doubling the plant’s capacity to cater to the targeted 30 million CTV sales in the next 3-5 years. What a scale and entrepreneurship!
TCL, like most other industrial enterprises in China, is actually promoted by the provincial government of the Guangdong province, whose economy is growing at 15 per cent against China’s 8-9 %.”
Can we say the same for some Indian companies- Moser Baer, Welspun, Exel Packaging? Why can’t Indian electronics firms such as Videocon be one? The mind set must change. Our entrepreneurs must think big and aim to reach in the big global club. Reliance is one, but its too much dependence on political bosses is worrying.
But why can’t TCL be emulated? Why can’t the productivity be improved to China’s standard at least if not to Japanese standard? If the productivity level of the parent Japanese company can be achieved by one company, why can’t it be done by the most of them? Why is the total incidence of indirect tax on Chinese colour TV approximately 50% lower than on an Indian colour TV? Why can’t the import duty on picture tubes and glass be same as that of China? Why is the import duty on basic metal higher In India than that in China even when the metals are scarce?
There may be many more questions that many of us can’t answer but we at our level must start thinking in a manner that makes us globally competitive. It may help in getting the overall effect on the country’s productivity.
- Indra
Category: Manufacturing |
Leave a Comment