Indian manufacturers outperform global peers: Deloitte
29 November 2005
Mumbai: Indian manufacturing companies, often overlooked as a competitive force in global manufacturing, are quietly enjoying gross profits and sales growth rates nearly twice that of global manufacturers, according to the preliminary findings of Global Benchmark Study by Deloitte Touche Tohmatsu.
Preliminary findings from Deloitte's study in India indicate that local manufacturers are:
- Enjoying average sales growth of 15 per cent, as compared to global peers at 7 per cent and
- Delivering gross profits (EBIT) averaging 16 per cent, as compared with an 8 per cent global average.
The ongoing Global Benchmark Study includes more than 800 companies from Asia-Pacific (10 per cent), Central and Eastern Europe (10 per cent), North America (34 per cent), and Western Europe (44 per cent). Industries represented in the study include aerospace and defence, automotive, industrial and consumer products, life sciences, process, paper, chemicals, and high technology and telecommunications equipment.
The study had responses from companies and business units in India in the automotive (46 per cent), consumer products (8 per cent), industrial and discrete manufacturing (29 per cent) and process / chemical (17 per cent) sectors. Approximately 30 per cent of the respondents have total sales of more than $200 million.
"Deloitte's preliminary benchmark findings reveals that industry capabilities in areas such as product innovation, manufacturing quality, and process innovation are driving the performance of Indian manufacturing companies," says Kumar Kandaswami, manufacturing industry leader,
Deloitte Touche Tohmatsu India Private Ltd.
