Manufacturing
Sector Update


Manufacturing Summit

11th Manufacturing Summit 2012

 

The 11th edition of CII’s flagship event, for the Indian Manufacturing Sector, the Manufacturing Summit 2012, is scheduled for 17th & 18th December 2012, at Mumbai.

 

Over the past two decades, China''s manufacturing sector has proven to be a great growth story relying primarily on its strength in the manufacturing sector. Output across sectors like auto, steel, energy have witnessed jumps of 2-5X over the past decade alone in China. Indian manufacturing has grown by a slower amount at around 9% over the last decade. Over the last year, the growth has slowed down even more to less than 5%.

 

As China''s competitiveness declines – due to Yuan appreciation and wage inflation, and investment drops as a percentage of its GDP, there is a universal expectation that Chinese manufacturing''s growth is unlikely to continue unabated. There seems to be a clear opportunity for other countries like India to fill this void and become a manufacturing superpower to the world. Indian manufacturing has come of age in several areas. Select sectors such as auto components, gems and jewelry, have been globally recognized for adherence to global standards. Across mobile handsets, cars, engineering components, garments, global leaders have some of their largest factories in India. At the same time, in many other areas of manufacturing – heavy engineering, tooling, process equipment, aerospace, Indian industry is still grossly underdeveloped. The recent slowdown in manufacturing growth has raised further questions on the true potential in Indian manufacturing.

 

Given this situation, the theme for the Summit was "Re-igniting India''s Quest for Manufacturing Leadership".

 

The CII-BCG Report and the Leadership Survey were released at the Summit on 17 December 2012. While the Report talks about the rapidly changing global manufacturing landscape, and the emerging window of opportunity for India; the Survey which interviewed from 70 senior representatives of top Indian manufacturing companies, reflects the modest outlook for the sector, with over 75% respondents expecting the sector to grow at lesser than 7%.  

 

 

10th Manufacturing Summit 2011

 

Held in Mumbai on 14 – 15 December 2011, the 10th Manufacturing Summit discussed the situation where Indian manufacturing sector continues to grow below its true potential. Existing issues of skills, infrastructure, and depth of manufacturing continue to be germane. Older issues such as labor relations have re-emerged again. Demand has slowed down. On the other hand, there are also several positives. For e.g. Indias competitive position for export-oriented goods vis-à-vis China is now stronger thanks to a weak rupee and a stronger Yuan, coupled with increase in Chinas labor rates. We also finally have a consolidated National Manufacturing Policy that sets a challenging vision and lays down a bold agenda in erstwhile untouched areas such as labor flexibility and company exits.

 

In many ways therefore, Indian manufacturing sector is at a point of inflection and could well spiral into a few decades of insignificance, consumed by our constraints and moving along far below our true potential, or we could see an aggressive growth phase re-emerging, riding on the structural and policy changes that are happening. Hence the theme of the Summit - “Indian Manufacturing at a Point of Inflection: Challenges and Responses”.

 

A CII-BCG Background Note was released at the Summit which gave a perspective on the aspirations for the Indian manufacturing sector and the latest trends that could shape their journey to achieve these aspiration

 

9th Manufacturing Summit 2010

 

The 9th Manufacturing Summit was held in Pune on 26 - 27 November 2010. The theme was ‘Re-inventing the Indian Manufacturing Advantage : A New Agenda!’ and proposed to showcase to the world the far-reaching changes being witnessed in the enlightened thought process of the Indian Manufacturing Sector thus ushering in a transformation in the basic manufacturing concept of India, and heralding an era of re-inventing The India Way of Manufacturing.

 

Indian manufacturing has become the launch pad for various strategic ventures and has risen above the numerous societal and bureaucratic hurdles. Still, it is widely felt that the Indian Industry lacks sufficient depth. To increase its rate of growth, as well as to shape its growth and to achieve its goals, India could do well with a manufacturing agenda / strategy. This strategy / agenda would in turn determine the choices that Indian Industry has to make in order to achieve the desired results.

 

The Theme Paper for the Summit reveals some trend-setting vistas in the sphere of manufacturing which addressed ways to leverage our demographic advantage, moulding it into a new Interface with machines and manufacturing processes.

 

8th Manufacturing Summit 2009

 

The 8th edition of the CII Manufacturing Summit was held on 05 - 06 November 2009 in Mumbai and delved on the theme ‘Factory of the Future: Preparing Indian Manufacturing for Renewed Growth’.

 

It was felt that when Indian economy came out of the spectre of a global meltdown, things would not be the same as before. Market Dynamics and Value propositions would be different. Face of the new customer would be more rustic. It would take a while before they stabilize to any predictable behavior. For such a non-standard crisis, standard responses would not suffice. Manufacturing sector would have to rethink its strategies, going Beyond Lean, draw out vistas of ‘Factory of the Future’.

 

8th Manufacturing Summit aimed to address ways to leverage India’s demographic advantage, moulding it into a new Interface with machines and manufacturing processe The Summit attempted to cull out the ‘India Way’ from cutting edge concepts to pitchfork our manufacturing sector to become a global hub.

 

The Theme Paper for the Summit provides the highlights for the event.

 

 

7th Manufacturing Summit 2008

 

‘Building Manufacturing, Building India’ was the theme of CII’s 7th Manufacturing Summir, held in Mumbai on 22 – 23 September 2008.

 

The Summit discussed the following important issues on a priority basis - manufacturing in India stands a competitive advantage due to lower labour cost, large pool of skilled manpower, higher skilled workforce and high capital productivity. The Background Note gives a purview of the focus on ‘Building Manufacturing, Building India’ through product & strategy development, product differentiation to name a few.

 

 

6th Summit 2007

 

The 6th Manufacturing Summit was held in Mumbai on 19-20 November 2007 with the theme ‘Breakthrough Value Creation for Indian Manufacturing’.

During the Summit a CII-BCG Report on Breakthrough Value Creation for Indian Manufacturing was released

 

The objective of The Report was to identify key value creation drivers in the Indian manufacturing sector and understand how they could be effectively applied by the industry at large.

 

The Report highlights the following:

 

  • The top three value creating industries across all sectors of the economy for 2002-07 are from the manufacturing sector and not from the much talked about new economy sectors 
  • Specific drivers of value creation for top performers – tapping international markets, well though through and executed M&As, actively managing the HR and innovations in products, process and business models.  
  • Internationalization is used as means to tap newer and often bigger markets, and also to develop capabilities to compete with global players 
  • Most top perfomers have actively leveraged M&A to drive value creation
  • Recognition of core advantage when companies possess and actively manage their human resources in a disciplined manner  
  • Innovation is used by manufacturing companies to maintain their competitive advantage  
  • Manufacturing is not merely shop floor production and assembly, but includes elements of design and development  

The CII-BCG Joint Report gives an integrated view of the bigger role that Indian manufacturing has to play in the global manufacturing arena.

 


5th Summit 2006

 

The 5th Manufacturing Summit was held on 19-20 December 2006 in Mumbai and the theme was ‘Innovate and Win’.

 

The 5th Summit was aimed to introduce a structured discussion and establish a knowledge sharing platform on the topic of Innovation and its multiple facets, and hence the theme. The Summit further aimed to break the myth that Innovations are created and it works only for large corporates. Hence, the focus was also on medium & Small Scale companies who have done significant work in the field of Innovation. The Concept Note for the Summit provides the information on the various sessions and the thought process behind the same.

 

 

4th Manufacturing Summit 2005

 

CII’s 4th Manufacturing Summit for “Innovation for Sustainable Advantage” aimed at highlighting the importance of Innovation in terms of change, development and upgradation of technology, processes, products and managerial techniques in each and every industry to help maintain a competitive edge and carve out a niche market for its products. It would further try to provide a practical, pragmatic and actionable perspective on innovation by bringing to the forefront some Industry success stories.

 

The Summit was held in Mumbai on 13 and 14 December 2005 and provided a platform to Indian Manufacturing Industries, to highlight areas of key competencies, and to help study, conceptualize and build brands that are internationally competitive.

 

A Sr. Executive Survey for ‘Manufacturing Innovation’ by CII and BCG was released on the occasion. The Survey was conducted to understand how senior Indian executives were thinking about innovation in their organizations.

 

3rd Manufacturing Summit 2004

 

The theme for the 3rd edition of the Manufacturing Summit was ‘Made In India’ and laid emphasis on the next big manufacturing export story.

 

Held in Mumbai from 07 – 09 October 2004, the Summit considered the issue of manufacturing exports from India not having taken off even though India has several advantages in manufacturing, including engineering skills (process, product, quality and capital), a growing domestic market, an established raw material base and a large pool of skilled labour. The CII - McKinsey Study assessed the potential for manufacturing exports from India and what it will take to capture the opportunity.

 

2nd Manufacturing Summit – 2003

 

The 2nd edition of the Manufacturing Summit was held in Mumbai from 30 October – 01 November 2003. The theme of the Summit was ‘Future of World’s Integrated Manufacturing Is Here ... ‘

 

The highlights of the Summit were projecting India as the manufacturing hub of the world, integrating SMEs with global partners; attracting talent to Manufacturing and creating the contours for the National Manufacturing Policy.

 

An Executive Summary cum Backgrounder, prepared by Edelweiss Capital, discussing the revival of the Indian Manufacturing Sector and the catalysts or drivers of this transformation was also released on the occasion.

 

1st Manufacturing Summit - 2002

 

CII’s flagship event, The Manufacturing Summit started in 2002 in Mumbai. The Summit was spread over 3 days, from 22 – 24 October 2002 and was based on the theme ‘Unleashing the Manufacturing Potential of India’.

 

While the Indian economy has been on a fairly high and steady growth path through the last decade, the Indian Manufacturing Sector, a key component of the economy, has been in and out of the doldrums. The initial upsurge in growth has also gradually tapered off and the general trend has been one of despair and decline. The poor operational performance of manufacturing companies in India has only served to heighten the problem and dysfunctional and inadequate “cart before the horse” policy making by the Government has not in any way helped to ease the burden. The advent of globalisation and its increasing spread across the world, has only augmented the woes of the manufacturing sector.

 

A CII-McKinsey Study was released on the occasion, which offered recommendations for changing factors related to growth of the Indian Manufacturing Sector.

 



Shefali Chaturvedi
[Senior Director]
Developmental Initiatives
Confederation of Indian Industry
CII Gurgaon Office
249-F , Sector 18
Udyog Vihar
Phase IV
Gurgaon
Haryana
India-122015
Phone : 91-124-4014060-67
Fax :91-124-4014080
Email : shefali.chaturvedi@cii.in