IndoCarib
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MUMBAI: The share of 'Made in China' goods in India's consumption economy has eased as the dragon struggles to keep its cost-competitive manufacturing story going. China's overwhelming grip over supplies of stationary products, fabrics, toys and lighting products started loosening over the past year.
Consider this: ITC sourced 100% of its stationery products like pencils, geometry boxes and scholastic products marketed under Classmate brand from China. But imports will fall below 10% this year as the Indian behemoth moves sourcing back to India in a big way.
Chinese products had over 70% share of the domestic toy market, which is falling to about 50%. Fabric sourcing from China by the local garment makers declined 10% in the last 12 months. It's share of the lighting sector - where the market for CFL bulbs was mostly developed by Chinese imports a decade ago -has dropped to 15% from over 50% in 2007. Indian manufacturers are sighting gains even as China's factory prowess weakens on the back of an appreciating yuan, rising inflation and soaring wages in the wake of labour reforms in recent past.
Indian companies are bringing production back home, or taking it to other competitive markets. "Imports will now be restricted to select premium products. China used to cater to the world's stationery requirement . Now, some of it will come to India. It is already moving into Vietnam," said Chand Das, chief executive of ITC's education and stationery products business.
China's discomforts present a significant opportunity for local manufacturers. Funskool, India's leading toy company, has been approached by global biggies to source production from its Goa plant to offset rising costs in China. "All the big players are looking at India," said John Baby , CEO, Funskool (India), a joint venture between MRF and Hasbro of USA. "Two to three companies have approached us and are doing audits at our factory," said Baby.
The story is similar for the lighting industry where the Chinese glow is dimming fast. The 350-million-unit CFL bulb market in India has witnessed dwindling share of imports from the neighbouring giant. "Chinese CFLs failed to create an impact because they couldn't meet Indian market conditions where power situation varies," said Arun Gupta, managing director, NTL Electronics India. Gupta also argued that electronics, driven by intellectual properties, has become the backbone of lighting industry, where China has lagged behind.
But Chinese supplies have made inroads into India's infrastructure and capital goods industry . Anil Ambani's Reliance Group, for instance, has struck major equipment sourcing contracts in China for its power and telecom businesses in return for cheaper loans. Chinese equipment makers have also backed telcos like Bharti Airtel in their recent 4G roll-outs .
Desi Supplies Contain Dragon
China commanded 70% of domestic toy market, that has fallen to 50% now tNeighbouring country's share in lighting has dimmed to 15% from 50% in 2007 tAfter sourcing 100% stationery products, ITC's China imports will fall below 10% this year with sourcing moved back to India.
China imports losing ground in India - The Economic Times
Hopefully in the long run ,this will reduce the enormous trade deficit with China. And India may even enjoy trade surplus with China in the future !
Consider this: ITC sourced 100% of its stationery products like pencils, geometry boxes and scholastic products marketed under Classmate brand from China. But imports will fall below 10% this year as the Indian behemoth moves sourcing back to India in a big way.
Chinese products had over 70% share of the domestic toy market, which is falling to about 50%. Fabric sourcing from China by the local garment makers declined 10% in the last 12 months. It's share of the lighting sector - where the market for CFL bulbs was mostly developed by Chinese imports a decade ago -has dropped to 15% from over 50% in 2007. Indian manufacturers are sighting gains even as China's factory prowess weakens on the back of an appreciating yuan, rising inflation and soaring wages in the wake of labour reforms in recent past.
Indian companies are bringing production back home, or taking it to other competitive markets. "Imports will now be restricted to select premium products. China used to cater to the world's stationery requirement . Now, some of it will come to India. It is already moving into Vietnam," said Chand Das, chief executive of ITC's education and stationery products business.
China's discomforts present a significant opportunity for local manufacturers. Funskool, India's leading toy company, has been approached by global biggies to source production from its Goa plant to offset rising costs in China. "All the big players are looking at India," said John Baby , CEO, Funskool (India), a joint venture between MRF and Hasbro of USA. "Two to three companies have approached us and are doing audits at our factory," said Baby.
The story is similar for the lighting industry where the Chinese glow is dimming fast. The 350-million-unit CFL bulb market in India has witnessed dwindling share of imports from the neighbouring giant. "Chinese CFLs failed to create an impact because they couldn't meet Indian market conditions where power situation varies," said Arun Gupta, managing director, NTL Electronics India. Gupta also argued that electronics, driven by intellectual properties, has become the backbone of lighting industry, where China has lagged behind.
But Chinese supplies have made inroads into India's infrastructure and capital goods industry . Anil Ambani's Reliance Group, for instance, has struck major equipment sourcing contracts in China for its power and telecom businesses in return for cheaper loans. Chinese equipment makers have also backed telcos like Bharti Airtel in their recent 4G roll-outs .
Desi Supplies Contain Dragon
China commanded 70% of domestic toy market, that has fallen to 50% now tNeighbouring country's share in lighting has dimmed to 15% from 50% in 2007 tAfter sourcing 100% stationery products, ITC's China imports will fall below 10% this year with sourcing moved back to India.
China imports losing ground in India - The Economic Times
Hopefully in the long run ,this will reduce the enormous trade deficit with China. And India may even enjoy trade surplus with China in the future !
