The outsourcing story is getting stronger. Electrolux AB says it will outsource components worth Rs 1,000 crore (Rs 10 billion) from India over three years. This includes piston rings, metal fabrications and cold rolled steel. The components will be used by the company’s outdoor division, which makes garden and forestry equipment such as chain saw, riders, lawn mowers and lawn tractors. It is also looking to make India a sourcing base, reports CNBC-TV18.
At present, Electrolux sources components from many Asian countries like China, Taiwan and South Korea. The company says the Rs 1,000 crore (Rs 10 billion) order could have gone to eastern and western Europe, if not India, but it admits that it’s much cheaper to source from India.
Electrolux will shortlist the Indian vendors by April next year. Of the company’s total 14 billion euro turnover, the outdoor division contributes nearly 3 billion euros.
Electrolux sources parts and materials worth $9 billion every year. However, till now, it has given orders worth more than a million dollars to an Indian piston manufacturing company. In the past, the company has sourced software from Patni Computers.
From moneycontrol.com