Delhi, India (PressExposure) June 16, 2008 -- A new market research report, âIndian Contract Manufacturing â A Hot Opportunityâ, by RNCOS forecasts that the contract manufacturing market of India will grow at a CAGR of about 37% from 2008 to 2012, making up for nearly 7.6% of the global contract manufacturing market.
The report recognizes the low-cost advantage of India as one of the major drivers for the growth of contract manufacturing market. In India, most of the companies are able to make huge savings on construction, utilities, land and labor. For example, constructing a secondary manufacturing plant in India is much more cost-effective than the US, as companies can save nearly 82% on construction, around 38% on rent of industrial land and about 10% on utilities like gas, water and electricity. Also, the cost of labor (both direct and indirect) in India is just 11% of the labor cost in the US. Companies can also save about 10% on utilities like gas, water and electricity.
Apart from the cost advantage, strong infrastructure is also thrusting the contract manufacturing market in India, said the report. India has made compliance with Good Manufacturing Practices (GMP) mandatory for all manufacturing facilities in the country and Indian companies, to meet the quality standards of the European and US companies, are upgrading their plants.
The RNCOS research highlights that currently, India has over 200 manufacturing facilities that have been certified good, and out of these, nearly 75 are USFDA-certified, which is the highest number of approved facilities in any country other than the US. Moreover, many plants are approved by various other regulatory authorities also, like European Drug for Quality Medicine (EDQM), Europe, Medicine Control Agency, South Africa, the Anivisa Brazil, etc., says the RNCOS report. This high approval rate ensures the quality standards maintained by the Indian contract manufacturing companies, thus making the country a much sought-after destination for international players.
âIndian Contract Manufacturing â A Hot Opportunityâ, supplemented with detailed analysis on the statistics, provides in-depth study on the Indian contract manufacturing market. It discusses the current market size, capabilities, key segments and future growth prospects of the market and presents an insight into the various factors influencing the growth of the market.
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