Small mfg units join outsourcing party
By agencies   |   Wednesday, 12 October 2005, 19:30 IST
Printer Print Email Email
CHENNAI: Small manufacturing units are also joining the bandwagon of outsourcing in India. Recently, a Chennai-based KRVR Industries got an order from an American firm Autopartsasia Pvt Ltd, a company that deals in sourcing engineering products from India to U.S. companies. KVRK Industry which looks like a small workshop has an annual business turnover of around Rs 80 lakh. The company got order for a sheet metal-formed component of an agricultural implement. KVRK Industry’s Managing Director K Ravi said: “The American firm first bought ‘a year's stock’, but came back with a repeat order after three months.” The company had achieved its annual sales target in the first quarter itself, “We are confident to double our company’s turnover in the current financial year,” he said added: “We profit 40 paise to a rupee on exports, against 15 paise on domestic sales.” The success of KRVR's, indicates the maturity of India’s small and tiny sector. Autopartsasia’s Director and CEO, K Vaidyanathan said: “We procure a lot of castings from small units in Coimbatore, which expects to facilitate Rs 100 crore of exports this year.” Whereas, the big exports are happening from the Bharat Forge and TVS group, the companies, which never had customers outside the borders, are now getting opportunities to participate in the export boom. Vaidyanathan said: “Outsourcing is all about value-buying. We believe that the buyers easily save around 40 percent in costs. The opportunities from outsourcing is huge, but unlike IT or BPO industries, engineering units have to invest heavily upfront in scaling up capacities.”

siliconindia