Industrial manufacturing is a major growth sector for the Indian economy with diverse companies including those engaged in manufacturing of machinery and equipment, electrical and metal products, cement, building and construction material, rubber and plastic products and automation technology products.
Industrial production has slowed down considerably on account of the slump in the Indian economy. Higher interest rates have increased the cost of capital thus impacting new investments. The industry is in cautious mode with focus on cost control measures and risk management. Wherever possible, manufacturing companies have focussed on export sales to mitigate the impact of domestic slowdown and benefit from the rupee depreciation.
In these challenging times, certain sectors have shown resilience taking proactive measures to sustain growth. Impetus is on new product development and R&D initiatives aimed at improving product portfolio so as to increase margins. Manufacturing segments are also making investments to enter Tier 2 and Tier 3 cities in order to boost sales.
At PwC, our India Industrial Manufacturing practice has sector specialists working with domestic as well as multinational companies. We are an integral part of PwC's Industrial Manufacturing global network giving our experts access to industry specialists in over 140 countries. It is with this kind of depth and breadth of experience that PwC assists both large and medium-sized industrial manufacturing companies through our offices across India to reduce costs, transform, innovate, improve performance and grow.