Friday, November 26, 2004

Top MNCs set up shop in Bangalore

Top MNCs set up shops in Bangalore

Indian Express

Bangalore, November 25: The international sourcing teams (ISTs) of some of the largest MNCs have made Bangalore their base with annual procurement targets of approximately $1 billion each.

Some of the ISTs of major corporations which are already in Bangalore and growing their sourcing volume every year are American Power Conversion (India) Pvt Ltd, GE, Robert Bosch, Tyco Electronics Corporation (I) Pvt Ltd, Walmart, Schneider Electric, Hewlett Packard and Molex India Tooling Pvt Ltd.

Many of these large MNCs, which were earlier making a beeline for China and Eastern European to cash in on, the best in incentives and manufacturing costs have taken a detour and are now zeroing in on India.

This is largely due to the increasing manufacturing costs in both China and Eastern Europe, which reduce the profit margins of these corporations.

‘‘Most of these corporates are in the process of building long-term supplier bases in India which will be able to sustain manufacturing costs, technology and logistics,’’ said an industry insider who spoke to this website’s newspaper’s reporter on condition of anonymity.

He said Walmart, which has its sourcing team in Bangalore, has to meet an annual target of sourcing almost $1 billion worth of goods out of India.

Apart from procuring almost everything from pins to refrigerators, Walmart is also procuring Indian jewellery. According to analysts, what makes Bangalore an attractive destination for ISTs is that it has a very strong manufacturing support infrastructure in place, with assured product quality.

Moreover Bangalore has a strong supplier base with the presence of BHEL, BEL, HAL, etc. Its salubrious climate and large pool of skilled technical talent is an added draw, enabling MNCs to create a backup of a strong supplier base in India.

American Power Conversion (India), GE, Robert Bosch, Tyco Electronics Corporation (I), Walmart, Schneider Electric, Hewlett Packard and Molex India Tooling Pvt Ltd are growing their sourcing volume.

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