What Companies Can Learn from Cleanfix
Swiss cleaning machine manufacturer Cleanfix has established a new assembly plant in India. The company was supported by an expert team of engineers, supply chain specialists, and procurement professionals from Projekt Professionals and Kloepfel Services. Based on this project, the consultants have derived 10 valuable lessons for other medium-sized companies.
Why India?
Cleanfix, known for its robust and innovative cleaning machines, chose India as a location to tap into the vast market potential of the 1.4-billion-strong country. India stands out as the world’s largest democracy with a young average age, promising demographic trends, and widespread English proficiency. Additionally, setting up an assembly plant in India helps reduce costs. Furthermore, the “China Plus One” strategy minimizes Western companies’ dependence on China by establishing additional production or supply chain locations in other countries.
The Biggest Challenges
Establishing a plant in India presents companies with numerous challenges. Cultural differences between Western and Indian business practices require sensitive management and clear communication. Implementing Western quality standards demands a strong local presence and close collaboration with suppliers. Additionally, recruiting skilled professionals can be challenging, depending on the location. Overcoming these challenges was crucial to the project’s success and required careful planning and intercultural competence.
Lessons for Medium-Sized Companies
The Cleanfix project provides key insights for other medium-sized enterprises:
1. Leverage Local Partnerships
Joint ventures with experienced local partners are essential for effective market entry.
2. Consider Cultural Differences
Successful projects require a deep understanding of local conditions and intensive communication.
3. Gradual Expansion
The Indian plant initially serves only the local market to mitigate risks and gain experience.
4. Flexibility and Persistence
Indian projects often take longer and require more adaptability than initially planned.
5. On-Site Quality Assurance
A strong local presence and rigorous quality control are essential to maintaining Western standards.
6. Realistic Project Planning
Project plans and budgets should allow for generous time buffers, as timelines are often overly optimistic.
7. Clear Project Definition
Precisely defining the project scope at the outset is critical for success.
8. Effective Information Management
Smooth information exchange between the headquarters and the Indian plant is vital. This must consider the communication habits of Indian colleagues.
9. Relationship Management
Personal relationships and regular on-site visits are more important than formal contracts.
10. Expert Support
Partnering with specialized consulting firms helps overcome cultural and logistical challenges.
Outlook
Felix Rüesch, CEO of Cleanfix, summarizes: “Despite the challenges, expanding into India offers tremendous opportunities. In the long run, other markets could also benefit from Indian production. The free trade agreement between EFTA states and India further expands our scope of action by facilitating trade in machinery and semi-finished products.”
Read the full success story:
“Establishing a Cleaning Machine Plant in India”
Contact:
Kloepfel Group
Damir Berberovic
Tel.: +49 211 941 984 33 | Email: rendite@kloepfel-consulting.com