PROBLEM
How can a foreign company best manage the entire setting up of manufacturing facilities in India?
METHODOLOGY
We recently worked with a Japanese auto component manufacturer who planned a sizable presence in India and intended to later leverage the Indian operations to reach out to Africa and Middle East.
We compared various industrial estates in progressive states of India, short-listed the suitable industrial locations and evaluated the merits in terms of location and future expansion plans. We went through several rounds of evaluation, discussing with stakeholders including the respective state government, and zeroed down on the State of Gujarat which matched the client’s criteria i.e. access to ports and inland container depots, available warehousing space, supply of raw material, power and water supply and ease in supply the finished products to customers across India and possible extension of operations to Middle East and Africa.
OUTCOME
We managed all applicable regulatory approvals from relevant government departments. The stepwise approach towards pre-agreed project milestones was greatly appreciated by the client and included active coordination with relevant central and state agencies for allotment of industrial land, due diligence on selected land to ensure clear title, environmental clearances, labour licenses, fire approvals, power and water connection, factory license, warehousing license, necessary permission to install transformers, diesel generators, boilers and electric chimney. We simultaneously negotiated a favorable state support agreement to claim fiscal incentives, tax rebate and concessions. We also actively assisted the client to select key vendors and contractors for the construction phase, raw material supply and initial recruitment of key managerial staff, alongside ensuring that statutory compliances were fully met.
Several multinational companies across sectors have availed our turnkey solutions where specialized teams have successfully managed the complexities involved in establishing manufacturing facilities in India in various states.
