Introduction: Manufacturing White Goods in India
The white goods industry in India refers to the production and sale of large household appliances such as refrigerators, washing machines, air conditioners, and microwave ovens. This industry has seen significant growth in recent years, driven by increasing disposable incomes, urbanization, and a growing middle class.
The white goods market in India is highly competitive, with a mix of domestic and international players. Some of India’s leading manufacturers of white goods include LG, Samsung, Godrej, Whirlpool, and Haier. These companies offer a range of products at various price points to cater to different market segments.
The government has also played a role in India’s white goods industry growth. It has implemented various policies and initiatives to promote the domestic production of white goods and encourage the use of energy-efficient appliances. These measures have helped to reduce the country’s dependence on imports and create employment opportunities.
Raw Materials Required
The raw materials used in the white goods sector in India depend on the specific type of appliance being produced. In general, however, white goods typically require a range of materials for their production, including:
- Metals: White goods often require various types of metal for construction, such as steel, aluminum, and copper. These metals may be used for structural components, electrical wiring, and other purposes.
- Plastics: Plastic is another common material used in producing white goods. It is often used for knobs, handles, and other decorative elements.
- Glass: Many white goods, such as refrigerators and ovens, incorporate glass in their construction, which may be used for door panels, windows, or other components.
- Electronic components: White goods typically require various electronic components such as circuit boards, motors, and sensors. These may be sourced from domestic or international suppliers.
- Refrigerants: Air conditioners and refrigerators require refrigerants to function. These may be sourced from a range of suppliers.
- Packaging materials: White goods also require packaging materials such as cardboard boxes, bubble wrap, and foam sheets for transportation and storage.
In addition to these materials, white goods manufacturers may also use a range of other inputs such as adhesives, lubricants, and paints in the production process.
NIC and NCO of White Goods
The National Industrial Classification (NIC) is a system used by the Government of India to classify industries based on their type of activity. The NIC is used for various purposes, including collecting statistical data and administering government policies and programs. It helps to provide a standard framework for the classification of industries, which enables consistent data collection and analysis across different sectors. In the case of the white goods industry in India, the NIC assigns the code “33.11” to manufacture refrigerators, air conditioners, and other white goods.
The National Classification of Occupations (NCO) is a system used by the Government of India to classify occupations based on the type of work performed. The NCO is used to collect and analyze statistical data on India’s employment and labor market trends. The NCO system helps to provide a standard framework for classifying occupations in India, enabling consistent data collection and analysis across different sectors. It also helps to provide a common understanding of the types of occupations within India’s white goods industry.
In the case of the white goods industry in India, a range of occupations may be classified under the NCO system. Some examples of occupations in the white goods industry in India include:
- Engineers: Engineers may be involved in the design and development of white goods products, as well as quality control and testing.
- Production workers: Production workers may be responsible for operating machinery and assembling white goods products.
- Technicians: Technicians may be involved in maintaining and repairing white goods products.
- Sales and marketing professionals: Sales and marketing professionals may be responsible for promoting and selling white goods products to consumers.
- Managers: Managers may oversee the operations of a white goods manufacturing facility or retail outlet.
The white goods industry in India is present in various states across the country. Some of the states that have a significant presence in the production of white goods in India include:
- Tamil Nadu: Tamil Nadu is a central hub for producing white goods in India. It is home to several leading manufacturers, such as LG, Samsung, and Whirlpool, which have established production facilities in the state.
- Gujarat: Gujarat is another crucial state for producing white goods in India, and it is home to some manufacturers, including LG, Haier, and Godrej.
- Maharashtra: Maharashtra is a major manufacturing hub in India and has a significant presence in the white goods industry. Companies such as LG, Samsung, and Godrej have production facilities in the state.
- Uttar Pradesh: Uttar Pradesh is another state with a significant presence in the white goods industry. Companies such as LG and Whirlpool have established production facilities in the state.
- Andhra Pradesh: Andhra Pradesh is also home to a number of white goods manufacturers, including LG and Godrej.
These states have a range of factors that make them attractive for producing white goods, including a skilled labor force, favorable business environments, and access to transportation and other infrastructure. In addition to these states, white goods manufacturers are located in other parts of India.
The infrastructure required for the production
The infrastructure required for producing white goods in India depends on the specific type of appliance produced and the manufacturing facility’s size. In general, however, the production of white goods in India typically requires the following types of infrastructure:
- Manufacturing facilities: White goods manufacturers typically require extensive, specialized facilities to produce their products. These may include assembly lines, testing and quality control labs, and warehouses for materials and finished products.
- Transportation and logistics infrastructure: White goods manufacturers typically require a range of transportation and logistics infrastructure to support the production and distribution of their products. This may include roads, ports, airports, and rail networks to move raw materials, finished products, and personnel.
- Utilities: Manufacturing facilities typically require a range of utilities, such as electricity, water, and natural gas, to support their operations.
- Support services: White goods manufacturers may also require a range of support services such as banking, insurance, and legal services to support their operations.
- Skilled labour: The production of white goods requires a skilled labour force, including engineers, technicians, and production workers. Manufacturers may also require support staff such as managers, sales and marketing professionals, and customer service representatives.
The specific infrastructure requirements will vary depending on the size and scale of the white goods manufacturing facility and the specific products being produced. To ensure the smooth and efficient operation of a white goods manufacturing facility, it is vital to have the necessary infrastructure.
The Production Linked Incentive (PLI) scheme aims to promote the domestic production of certain goods and services, including white goods. The PLI scheme provides financial incentives to companies that meet particular production, employment, and export criteria.
The white goods industry in India has benefited from the PLI scheme by receiving financial incentives for increasing the production and exports of white goods. This has helped boost the domestic white goods industry and reduce the country’s import dependence. The PLI scheme has also encouraged the adoption of advanced manufacturing technologies and practices in the white goods industry, which has helped to improve the competitiveness of Indian white goods manufacturers and increase their ability to meet the needs of domestic and international markets.
Overall, the PLI scheme will play a key role in the growth and development of the white goods industry in India. It will help to create a more favorable business environment for manufacturers and has contributed to the expansion of the domestic white goods market.
Anurag Dhole is a Research Intern at Tatvita. Presently he is pursuing his bachelors in the Liberal Arts department at the Savitribai Phule Pune University.