A transformative opportunity: 11manufacturing value chains, $300 billion of GDP potential

A transformative opportunity: 11manufacturing value chains,

 $300 billion of GDP potential


PRK Steel Products Pvt. Ltd.


One of the top companies producing slotted angle racks, palletized racking systems, and other sophisticated logistical equipment on a large scale is PRK Steel Products Pvt. Ltd. From research and development through designing, manufacturing, and installation of logistical equipment, we provide a full range of services. In addition to Pallet racks, steel pallet racks, metal pallets warehouse storage racks, industrial pallet racks, industrial storage racks, industrial sheds, two- or three-tier racks, library stacks, etc., we also provide a wide selection of tested, high-quality items.

 

While some companies and sectors in India’s manufacturing industry have delivered strong returns on invested capital (ROIC), most have not. According to our analysis, nearly 700 of the top 1,000 manufacturers produced returns that were less than their cost of capital in 2018, thereby destroying value. By contrast, the sectors that generated healthier returns saw increases in invested capital during the four years from 2016 to 2019 (Exhibit 1).


Exhibit 1

We strive to provide individuals with disabilities equal access to our website. If you would like information about this content we will be happy to work with you. Please email us at: McKinsey_Website_Accessibility@mckinsey.com


Several conditions help explain why Indian manufacturers tend to create limited value. Some have to do with the costs of infrastructure and key inputs. Poor logistics causes delays and raises inventory costs; high prices for power and credit inflate operating expenses. Other conditions are inherent to the value chains. The small, fragmented companies that make up some value chains cannot operate productively, let alone at peak efficiency; cannot innovate quickly enough to keep up with competitors; and cannot command price premiums because they lack strong brands.

At the same time, many of India’s manufacturing value chains enjoy important advantages that could help power them to rapid growth. India’s natural resources (for example, iron ore, bauxite, high solar insolation, and cotton) and low-cost labor are a boon to makers of basic metals, textiles and apparel, renewable energy, and chemical products. The country’s large numbers of well-trained workers lend strength to skill-intensive value chains such as pharmaceutical formulations, capital goods, and automotive components. And many manufacturing value chains in India operate in close proximity to strong domestic markets. The makers of fast-selling technology products, for example, enjoy ready access to millions of Indian consumers.

for more information: 

  • Do you know that Online Promotion House is known for supplying the best Online promotion for your business?

  • SEO is very important for every type of businessman if you want to grow your business and looking for the best Online promotion services then an online promotion house is the best option for you.

 

Comments

Post a Comment