Just got an article from a friend I had brought to India last month to do a deal in biotech. The McKinsey article “Fulfilling the promise India’s manufacturing sector” highlights how India’s manufacturers will have a tremendous opportunity to grow due to rising domestic Indian demand and because multinationals desire to diversify from their existing low cost manufacturing bases in China. India will play a significant role in global manufacturing because it has hundreds of millions of potential workers, speaks English and has a huge, growing domestic market to leverage.
The domestic market for electrical machinery will have a Compound Annual Growth Rate (CAGR) of 23% to 2025. In the midst of an anemic global economic recovery this is exciting growth. From automotive, consumer, industrial and medical electronics to telecom equipment McKinsey is expecting tremendous growth to catapult India into the manufacturing big leagues with China, Germany, Japan and the US.
At SCL we have already seen significant growth in demand (albeit with tremendous pressure on margins) in spite of the global recession. We also see new projects that our customers are working on in automotive, high technology, LED lighting, solar, aviation and defense that underline the huge potential going forward. We are looking forward to growing in the brand new 2012-13 fiscal year!
– C. Krishna “Kris” Rao