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Sustainable Competitive Advantage

By Guest Author,

Added 10 July 2015

Green Manufacturing needs to be an integral part of the organisational strategy, says Joydeep Chatterjee, General Manager - Corporate Quality Assurance, Kirloskar Brothers Ltd.

The Indian manufacturing sector has witnessed an unprecedented change in terms of complexity, increased uncertainty and turbulence in the business environment in the last two decades.

There has been an increased inter-linkage and a shift in the marketplace across the globe, which is skewed towards Asia with global businesses considering India and China as the fulcrum of the change.

With global corporations having recognised the potential of India and China's manufacturing capabilities, Indian corporates have been venturing out to garner an increased share of global manufacturing.

While China has had an upper edge over India so far, largely on the back of abundant cost-effective labour, things are now changing with rising Chinese wages and demanding global customers. One important aspect that global corporations consider before selecting manufacturers in Asia / elsewhere is the vendor's approach to manufacturing.

The paradigm shift towards environment-friendly approach in manufacturing by Indian corporate sector kicked off more as compliance with the changing regulations related to environment, as also the need to comply with the changing legislative requirements for exports.

As a concept, Green Manufacturing has its roots in Germany, which in the early-nineties started requiring its vendors to own the responsibility of disposal of packaging solid waste generated in their countries of manufacturing. This subsequently got extended and further established as a de facto global manufacturing standard instilling that, "any company wishing to compete globally must start making products that will comply with the green dictates of the huge global market."

(Continued on the next page)

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