MSME integration is critical for automakers and Tier 1 component manufacturers seeking to localise

Sumit Bhatnagar, Group President of India's US$ 2 billion Tier 1 component maker Anand Group, stressed the importance of startups and MSMEs in bolstering localisation. Talking at an event organised by CII's Visionary Leaders for Manufacturing (VLFM) programme in Mumbai, he said that Auto OEMs and Tier 1 Component manufacturers need to give priority to start-ups and MSMEs, in order to give a fillip to localisation and manufacturing. 

"We are supporting over 200–230 MSME vendors, guiding them to perform better through internal mentors, and have developed a common dashboard that measures the quality of their performance," Bhatnagar said. Manufacturing ranks third in India, trailing only services and agriculture. According to CII estimates, the sector currently employs over 28 million people and accounts for nearly 18 percent of the economy.

Bhatnagar addressed the VFLM program graduates, stating that Japan and Korea have contributed to global auto production with a diverse range of components, as well as China, which has set the standard for global supply chains to rely on due to its large population base, which is also a ready consumer for automobiles, and its supporting ecosystem.

"Skilled and highly knowledge-intensive manpower must be available if India is to compete on the same scale as China." He added that he would recommend that the CII work with the government's and states' skill-building initiatives to ensure that "we get good talent, as India aggressively pushes localisation across categories through the PLI scheme." 

Scale is the key to sustaining growth as India promotes its manufacturing prowess to the world, according to Jamshyd N. Godrej, Chairman of the VLFM Governing Board and CMD of Godrej & Boyce.  

"Creating the scale and volume for large-scale manufacturing will transform India into a powerhouse, providing opportunities for industry and enterprise growth," he stated, addressing the 14th VLFM 2023 convention. The Chairman and Managing Director of Godrej & Boyce also stated that the country's overall manufacturing expertise is growing as a result of the thriving start-up culture.