'India lacks mass production firms'

India needs to develop mass production companies which can cater to requirements of 100,000's units as opposed to the available capacities of a few thousand pieces on an average said David Bradley, director of commodity management, Asia, Jabil Circuit, a global leader in electronic product solutions.

Potential suppliers also fail to qualify becoming global suppliers as they lack awareness of international processes, especially environmental issues, Bradley told Business Standard on the sidelines of a seminar on Emerging Imperatives for Electronics Hardware -- E-waste and New Materials for Eco-Friendly products

Jabil set up its India operations in 2005 after the acquisition of Philips manufacturing unit in Pune.

In 2006, the company added capacities with the acquisition of Celetronix International. "We are keen to localise our supply chain but have not found suppliers who have mass production technology," said Bradley.

Six months ago, Jabil launched a programme to identify potential suppliers. The company has identified close to 150 suppliers and will evaluate them for the potential to become mass manufacturers.

These companies will be required to invest in manufacturing capacities and match its requirements for technical, environmental, quality and others.

Presently, Jabil imports the mass produced components from Taiwan and China.

"We will start substitution of imported goods with local goods on the basis of logistics and costs," said Bradley adding that By April/ May they hope to identify a few local suppliers.