(2/8)
Key reasons for concern:
1. COST COMPETITIVENESS
Giant scale manufacturing could mean lower costs which in turn could increase cost competitiveness and reduce margins for existing manufacturers
#costcompetitiveness
Key reasons for concern:
1. COST COMPETITIVENESS
Giant scale manufacturing could mean lower costs which in turn could increase cost competitiveness and reduce margins for existing manufacturers
#costcompetitiveness
(3/8)
2. "ATMA-NIRBHAR COMPETITION"
Government providing financial and policy help could encourage existing clientele to start their own distributed manufacturing hubs and control and future proof their supply chains
#AtmaNirbharBharat
2. "ATMA-NIRBHAR COMPETITION"
Government providing financial and policy help could encourage existing clientele to start their own distributed manufacturing hubs and control and future proof their supply chains
#AtmaNirbharBharat
(4/)
3. DE-RISKING OF SUPPLY CHAINS
With increased choices of contract manufacturing, most clients would prefer to diversify their supply chains to avoid bottle-necking and to prevent supply disruptions in case of unforeseen events with any particular contracted manufacturer
3. DE-RISKING OF SUPPLY CHAINS
With increased choices of contract manufacturing, most clients would prefer to diversify their supply chains to avoid bottle-necking and to prevent supply disruptions in case of unforeseen events with any particular contracted manufacturer
(5/)
4. HIGH DEPENDENCE ON FEW CLIENTS
Although companies like #DixonTechnologies are trying to diversify their revenue sources to reduce #dependence on concentrated orders, a loss of even a single client could disrupt their revenues by 5%-30% depending on the client
4. HIGH DEPENDENCE ON FEW CLIENTS
Although companies like #DixonTechnologies are trying to diversify their revenue sources to reduce #dependence on concentrated orders, a loss of even a single client could disrupt their revenues by 5%-30% depending on the client
(7/8)
6. SMALLER SLICE OF A BIGGER PIE
The growth forecasts of Indian contract manufacturers was based on more business coming in annually as the Total Addressable Market continues to grow but now those opportunities of growth will be diverted to various other competitors as well
6. SMALLER SLICE OF A BIGGER PIE
The growth forecasts of Indian contract manufacturers was based on more business coming in annually as the Total Addressable Market continues to grow but now those opportunities of growth will be diverted to various other competitors as well
(8/8)
All in all, a very big step for India but an equally dangerous scenario for mobile phone contract manufacturers. Growth for the country and the economy doesn't always mean there wont be disruptions and collateral damage.
#Megatrends
All in all, a very big step for India but an equally dangerous scenario for mobile phone contract manufacturers. Growth for the country and the economy doesn't always mean there wont be disruptions and collateral damage.
#Megatrends
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