Ability to supply quality products at competitive
price is a key success factor in any business. This is more so in
international business where competition is not confined within
one country or state. When exporters from various countries compete
for same product - price, along with quality, play a crucial role
in decision making.
Cost, demand and competition are the three key factors that determine
final export price. To be successful in international market - you
should be able to source or manufacture products at cost that is
better than your competitors as sourcing or production cost is one
of the most crucial factor in determining export price. Whether
you are a manufacturer looking for competitive source of raw materials
or merchant exporter - three factors play vital role here
One can source almost everything from major cities
like Delhi or Mumbai. However, in most cases, these products reach
cities from hinterland through layers of middlemen, each of whom
add a transaction cost. It is true that middlemen may also add value
in terms of un-interrupted supply, consistent quality, low transport
cost etc. However, you need to balance this with cost effectiveness
of sourcing directly from producer. There is no omnibus solution
- one should check various alternatives and take a decision that
provides better sourcing cost.
There are geographical pockets in India that have
traditionally excelled in producing low cost products. Sourcing
from such pockets may significantly reduce your sourcing cost. Following
is a list of few such pockets
Glass Bangles / Glassware
Firozabad, also called the glass capital of India,
is a small town in Uttar Pradesh, 40 km from Agra. This pocket
accounts for roughly 70% of the total glass production in the
small-scale sector. There is a large agglomeration of small-scale
units engaged in the manufacture of hollow wares, decorative items,
glass beads, bulbs, headlight covers, bangles, etc.
Glass Beads
Purdalpur, a village near Agra, Uttar Pradesh for
North India and Papanaidupet, a village in Andhra Pradesh for
South India.
Home Furnishing Products
Handloom and power looms are mainly used to manufacture
various home furnishing products like table mats, durries, cushion
covers etc. Though these products are manufactured in many states
all over India (Maharashtra, Gujarat, Delhi, Tamil Nadu , West
Bengal, Rajasthan, Andhra Pradesh, and Karnataka) - two geographical
pockets have excelled in production and export of home furnishing
products: Karur in Tamilnadu and Panipat in Haryana
Metal Handicraft
Moradabad in Uttar Pradesh, is renowned for brass
work and has carved a niche for itself in the handicraft industry.
It is believed that the brassware industry originated from Moradabad
and spread to the rest of the country. Other geographical pockets
of excellence in metal handicraft are Sambhal, Aligarh, Jodhpur,
Jaipur, Delhi, Thanjavur, Jagadhari etc.
Wooden Handicraft
Saharanpur, in Uttar Pradesh, is famous for carved
wooden handicraft and home of carving in hard sheesham, vice-leaf
pattern. The range of designs include floral, geometric and figurative
decoration, in addition to the traditional anguri and takai carvings,
jali (fretted ornamentation), brass and copper and ivory inlay
work. Some of the major products from Saharanpur are boxes, furnitures,
candle stands, small utility items and other home decor items.
Apart from Saharanpur, other pockets of excellence are Nagina,
Hoshiarpur, Srinagar, Amritsar, Jaipur, Jodhpur, Bangalore, Mysore,
Berhampur etc.
Hand printed textiles and scarves
Amroha, Jodhpur, Jaipur, Farrukhabad, Bagru and
Sanganer
Knitted Fabrics, T-Shirts, Hosiery
Tirupur in Tamilnadu is the largest and best known
centre of excellence in knitted fabrics and garments. Other important
centre is Punjab and Gujarat
Marble & soft stonecraft
Agra, Tamil Nadu, Baster and Jodhpur
Papier Mache crafts
Kashmir, Jaipur Tamil Nadu and Andhra Pradesh
Terracota
Rajasthan, Tamil Nadu and Baster
Zari & zari goods
Surat, Agra, Varanasi & Amritsar
Imitation jewellery
Delhi, Moradabad, Sambhal, Jaipur and Kohima
Wools and Woolens
The woolen industry in the country is small in
size and widely scattered. It is mostly located in Punjab, Haryana,
Rajasthan, U.P., Maharashtra and Gujarat. 40% of the woolen units
are located in Punjab, 27% in Haryana, 10% in Rajasthan, while
the rest of the states account for the remaining 23% of the units.
Jute and Coir
Jute industry is highly concentrated with 59 Jute
Mills (out of total 76 in the country) located in West Bengal.
Kolkata and Howrah occupy a prominent place for jute and jute
products. Kerala in the south is the main centre for coir and
coir products.
There are many other centres of excellence in India
other than those listed above. Please do your homework to identify
centres of excellence near your place.
Dr. Amit K Chatterjee
