Shifting from old fashioned manufacturing processes to mechanized manufacturing processes -A practical experience of an Indian SME

The developments in the auto component industry in India can be traced back to the liberalization during the 1990s. Prior to the liberalization the Indian consumer had limited choice of brands and models to choose from. Trade liberalization policies resulted in an influx of multinationals companies into India. The entry of these foreign companies changed quality standards and increased the complexity of the parts required by the OEM firms. The Indian component industry responded to these challenges by adding capacity and modernizing existing plants. This Paper highlights the challenges as well as the limitations of the SME's to shift from the old fashioned manufacturing processes to the mechanized manufacturing processes. The paper concludes that new mechanized manufacturing method increases the quality and reliability and forced the OEM firms to depend. The turnover of the company has also improved from Rs 29.60 lacs [2000–01] to 308.12 lacs [2012–2013].