Friday, May 19, 2006

Chennai becoming a Global Manufacturing Hub?

This article in NY Times should make Chennaites proud.. It's a positive article on India's foray in to Global Manufacturing arena how it is trying to capture the middle segment..
Consider the formula of Muhammad Yavar Dhala, chief of Forward Shoes in Madras. The factory made a million pairs of leather shoes last year for European brands like Clarks. In other words, for shoes under $60, leave it to China. Above $240, leave it to European cobblers. In the middle, give it to India.
Most of the companies mentioned in the article are in Chennai and the article credits TN Govt for some advanced thinkig and planning...

Tamil Nadu leaders are credited with nudging the state to build infrastructure a few years before officials in the Indian mainstream caught on. The Madras seaport was recently privatized, trimming turnaround times, and electricity is now reliable. The government has focused on microchanges that can more easily avoid political problems while still lubricating trade, so they will approve special zones or allow companies to calculate their own customs.

I knew Hyundai, Ford, Nokia, BMW are all in Chennai, but didn't know Victoria's Secret too is in Chennai and makes 6.5 million bras.. (I have special attachment to Vicotoria's Secret.. wonder why? Don't let your thoughts wander around too much... I have special attachment to Victoria's Secrect because I was part of the team that did their first eCommerce site. That's the only reason.. trust me !!!!! )
Here in Tamil Nadu State, where the changes are the fastest, global corporations are already taking advantage of this shift toward manufacturing. Victoria's Secret buys 6.5 million bras a year in this city, roughly one-tenth of its global total, from a factory run by Limited Brands, the parent company.