Posted By Paul Tate, March 04, 2013 at 3:55 PM, in Category: Global Value Networks
If you wanted to set up a central manufacturing location to serve the fast growing domestic markets of South East Asia, where would you choose to set up your main plant? German home appliances manufacturer Bosch and Siemens has decided the best place is India.
This week Europe’s leading domestic appliances company announced plans to open a new $65 million production facility in Chennai which is scheduled to begin operation by the middle of next year. The plant will have a production capacity of up to 600,000 units a year and employ around 400 people.
“The expansion is in line with the company’s vision to further strengthen its presence and offerings in the Indian market which has tremendous scope for the home appliances segment”, said Marc Hantscher, CEO of Bosch andSiemens Home, Household Appliances Manufacturing. “The Chennai facility is also one of our future key export hubs, to cover the entire South East Asian market.”
Bosch Siemens also plans to establish a local research and development center as part of the new facility to develop future generation products aimed at the rising number of affluent Indian and South East Asian consumers.
This latest local manufacturing development also follows closely on the announcement of a new technology collaborative deal between Bosch Siemens and Mumbai-based Godrej & Boyce Manufacturing to create a new range of energy-efficient refrigerators for markets in India, Asia-Pacific, West Asia and Africa.
Bosch Siemens is clearly focusing heavily on the Asian market in a strategic bid to capitalize on improving lifestyles and the predicted strong growth in the domestic appliances sector across the region in the years ahead.
Are you planning an Asian export hub for the local manufacture of your products? Which Asian country location most appeals to you?
Written by Paul Tate
Paul Tate is Research Director and Executive Editor with Frost & Sullivan's Manufacturing Leadership Council. He also directs the Manufacturing Leadership Council's Board of Governors, the Council's annual Critical Issues Agenda, and the Manufacturing Leadership Research Panel. Follow us on Twitter: @MfgExecutive