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Declaring place of manufacturing will hit cos hard
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Bikky Khosla | 15 Jun, 2010
The recent government notification making it mandatory for companies to declare the place of manufacturing of their product with immediate effect has taken the industry by surprise. I agree with industry body, ASSOCHAM, on its view that the notification issued by the Ministry of Consumer Affairs will add to the woes of companies who would now require increased and separate inventory and logistic control in respect of each packer or factory location.
Moreover, doing so will take away the level playing field between the indigenous and imported packages and will thus greatly affect a manufacturer's flexibility. Since manufacturers pack their products at various factory premises located across the country through third parties, primarily to reduce the cost of the products, the move will now increase the inventory costs and logistic control cost of the companies.
Declaration of factory address will also go against maintaining business secrecy and will only add to confusion as to how companies would declare the addresses in the case of imported packages, wherein the factory address will be located outside the country, hence out of reach of enforcement authorities.
Meanwhile, I was quite elated to know that Small and Medium Enterprises (SMEs) have outperformed bigger companies in the country in terms of job creation in the aftermath of the global economic meltdown. The trend shows that SMEs are bullish in growth and are looking forward to take their businesses to the next level. SMEs, I believe, have shown more flexibility and have adapted wonderfully to the changing trends of the markets and to the needs of their consumers.
However despite the optimism, their path to growth is marred by several hurdles - one being, unduly delayed payments by large industry players. Working on limited resources and with not much help from the banking sector, larger companies should understand the needs of the smaller companies in these crucial times.
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Declaring place of manufacturing
P.K.Sharma | Wed Jun 16 07:36:06 2010
This step taken by the authorities good for the consumer.Declaring details of the manufacturer will bring more transparency and will provide more opportunities of growth for SME.
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Re: Declaring place of manufacturing
Harish Sharma | Wed Jun 16 09:49:17 2010
I'm not sure about that. Big companies ideally uses third parties for packaging, which are usually SMEs. Let's just suppose if for a particular reason, there arises a consumer case, the SME will be left to fight on behalf of the big company. I think by not mentioning the names and addresses of these third parties or SMEs, the big companies are actually protecting the smaller companies from unnecessary hassles.
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Re: Re: Declaring place of manufacturing
Milan Mehta, Mumbai | Wed Jun 16 11:12:01 2010
I do not agree. Legally speaking whosoever is responsible gets the due.
You think that a consumer fights a case to Big company and they shall not hold you accountable for the mistake you did when manufacturing for them ! Gone are those days, Sir. Here everybody wants top pass the dirt to other. Hence regarding consumer case this rule has no effect.
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Re: Declaring place of manufacturing
Nikos Terzakis | Wed Jun 16 14:39:21 2010
All this article is a lie.
The middlemen are in fact desperate that their customers will know who is the real producer for the products that they sell overpriced. Any such "courier" will be not able to put his fake "brand" on genuine and much cheaper manufactured products where is involved hard human work. It is easier to BUY and SELL than to WORK.
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SME Payment by Large Industry Players
Na Raghu | Wed Jun 16 05:56:36 2010
SME sector is performing well dispite of raising input cost, labour availability and limited resources. Bigger industries are not supporting on time payment and they recklessly cancel order when it is almost ready for shipment. Being big they do not pay advance and insist on credit showing their credibility. While cancelling order they shyoff. Bigger companies should understand that SME's can not afford order cancelation and holding the inventory. It also strains the cash flow.
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Re: SME Payment by Large Industry Players
Milan Mehta, Mumbai | Wed Jun 16 11:08:58 2010
Kindly understand that Bigger companies wants to grow still bigger at faster pace and they do not have social activity like you have mentioned " They should understand " ! Hence you have to be ready for the same when you deal with bigger company. BIGGER THE COMPANY, MORE THE PROFESSIONALISM AND LESS THE UNDERSTANDING YOU EXPECTED "
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Re: SME Payment by Large Industry Players
Surrender K Singal | Wed Jun 16 17:31:12 2010
What practical service has been actually provided by the enactment of The MSMED Act, 2006, to get SMEs' dues from Buyers without delay, even though Auditors of these defaulting Companies are mandatorily obliged to highlight such defaults of delayed payments for supplies from SMEs ?
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Declaring manufacturing locations
Arvind Gopal | Wed Jun 16 05:15:38 2010
I dont see what the issue is since the processed foods industry is following this diktat already. The product labels compulsorily need to carry the complete manufacturer's address be it indian or imported.
If one industry can do it why nota the others?
Declaring Manufacturing Locations
fanessa | Tue Jun 15 22:31:43 2010
I can understand there is a possibility of lucretive costs perhaps to the big company's. Usually, they find ways around these costs, it's the small, medium business's that end up paying. They need the help, I want to as an american do business with them however, we are told not to wire transfer monies to business's so we are both losing.
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