Contract manufacturing
A contract manufacturer ("CM") is a firm that manufactures components or products for another "hiring" firm. Many industries utilize this process, especially the aerospace, defense, computer, semiconductor, energy, medical, personal care, and automotive fields. Some types of contract manufacturing include CNC machining, complex assembly, aluminum die casting, grinding, broaching, gears, and forging.
In a contract manufacturing business model, the hiring firm - typically an OEM - approaches the contract manufacturer with a design or formula. The contract manufacturer will quote the parts based on processes, labor, tooling, and material costs. Typically an OEM will request quotes from multiple CMs. After the bidding process is complete, the hiring firm will select a source, and then, for the agreed-upon price, the CM acts as the hiring firm's factory, producing and shipping units of the design on behalf of the hiring firm.
In an international context, establishing a foreign subsidiary as a contract manufacturer can have favorable tax benefits for the parent company, allowing them to reduce overall tax liabilities and increase profits, depending upon the activities of the contract manufacturer.
Ambuj sees a bright future for all developed and advanced countries to replicate the model of Japan, where in they left the contract manufacturing to other countries like, Taiwan, China, Malaysia etc. and concentrated to their core.
We have short listed some notes. We look forward to your interest and comments on these.
WHY INDIA ?
- Abundant raw materials - chemicals, plastics, metals etc.
- Natural resources
- Low cost labour
- MNC's experience of past 2 decades
- Strategically located
AREAS
- Assembling
- Machining
- Milling
- Sheet metal fabrication
- Job Work
- Design Shop
- Tool Room
- Custom made products
- Castings
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