Here’s How to Start a Manufacturing Business

Apart from rising business opportunities in the sector, a wide array of trends have also been witnessed in the last year
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • Jul 08,2021
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  • 9 Mins Read

With the onset of the pandemic, disruption in the manufacturing industry was witnessed. Some manufacturers took it as a cue to pivot their business while others modified themselves to cope with digitisation. Even the government-led opportunities like VocalforLocal and AtmanirbharBharat facilitated in strengthening their manufacturing businesses.   

The sector’s Gross Value Added (GVA) at current prices was estimated at $350.27 billion as per the first advance estimate of FY21. The IHS Markit India Manufacturing Purchasing Managers Index (PMI) reached 55.4 in March 2021 from 57.5 in February 2021. The manufacturing GVA accounts for 19 per cent of the country's real gross value added. As per the latest survey, capacity utilisation in India’s manufacturing sector stood at 63.3 per cent in the second quarter of FY21 while the capital utilisation stood at 66.6 per cent in the third quarter of FY21.

Seeing the growth of the manufacturing business, many entrepreneurs have stepped into the manufacturing sector and infused in low-investment manufacturing business in India. Apart from rising business opportunities in the sector, a wide array of trends have also been witnessed in the last year. 

Using AI and Technology 

Hi-technology is being rapidly used in the manufacturing industry. To leverage businesses during the pandemic, a combination of tech tools along with skilled talents are employed now. Some of the novel technologies that have been used--AI, data analytics and IoT, to name a few. These technologies facilitate in enhancing growth and profits. 

Incorporating advanced technologies will help improve the manufacturing process as well as the end product, that is, manufactured product. 

Skilled Talent 

Human capital has turned out as an important asset for manufacturing companies. Skilled employees increase production, innovation and at last, production. They comprehend changes in the industry faster and accordingly, make changes in the production process or operations. 

Therefore, manufacturers can start training unskilled labourers through training. A rigorous theoretical and practical education has to be given to the labourers in order to make them efficient. 

Enhance Production 

With the changing times, manufacturers have begun using new technologies into their business. Technologies like 3D printing help aid prototyping, product designers and increase its presence in fields such as medicine, and aviation.   

As a result, traditional manufacturing techniques have been replaced by new emerging technologies that offer precision and speed up the production.  




 

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