The Swiss cleaning machine manufacturer Cleanfix has set up a new assembly plant in India. Cleanfix was supported by an expert team of engineers, supply chain specialists and purchasers from Project Professionals and Kloepfel Services. The consultants derived 10 valuable lessons for other SMEs from the project.
Why India?
Cleanfix, known for its robust and innovative cleaning machines, has chosen India as a location to tap into the enormous sales potential of this country with a population of 1.4 billion. India is the largest democracy with a young average age, good demographic forecasts and widespread use of English. In addition, the establishment of the assembly plant in India makes it possible to reduce costs. In addition, the "China Plus One" strategy reduces the dependence of Western companies on China by establishing additional production or supply locations in other countries.
The biggest challenges
Setting up a plant in India presents companies with a variety of challenges. Cultural differences between Western and Indian corporate culture require sensitive management and clear communication. The implementation of western quality standards requires an intensive local presence and partnership-based cooperation with suppliers. In addition, depending on the location, recruiting qualified specialists can prove difficult. Overcoming these challenges was crucial to the success of the project and required careful planning and intercultural expertise.
Lessons for SMEs
Important lessons can be learned from the Cleanfix project for other medium-sized companies:
1. use local partnerships: Joint ventures with experienced local partners are the key to effective market development.
2. take cultural differences into account: Successful projects require a deep understanding of local conditions and intensive communication.
3. gradual expansion: the Indian plant will initially only supply the local market in order to limit risks and gain experience.
4. flexibility and perseverance: Indian projects often require more time and adaptability than originally planned.
5. quality assurance on site: An intensive presence and a high level of quality assurance are crucial for implementing Western quality standards.
6 Realistic project planning: Project plans and budgets should allow for generous buffer times, as deadlines are often set optimistically.
7. clear definition of the assignment: A precise definition of the project assignment at the beginning is crucial for success.
8 Effective information management: A smooth exchange of information between the sending unit and the Indian plant is critical for the success of the project. The communication habits of the Indian colleagues must be taken into account.
9. relationship management: Personal relationships and regular on-site visits are more important than formal contracts.
10. expert support: Cooperation with specialized consulting companies helps to overcome cultural and logistical hurdles.
Outlook
Felix Rüesch, CEO Cleanfix, summarizes: "Despite the challenges, the expansion to India offers enormous opportunities. In the long term, other markets could also benefit from Indian production. The free trade agreement between the EFTA states and India further expands the scope for action because it facilitates trade in machinery and semi-finished products."