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Location: Kolkata, India
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How do businesses in US view low cost packaging machinery from India & China?

09/27/2009 3:15 AM

In these days of shortage of bank credit, the opportunity to buy low cost packaging machinery to augment capacity should be very important to US businesses. India and China are sources of packaging machinery (indeed all kinds of machinery) which typically may cost as little as one-tenth of machinery from Europe and North America, of course, with some compromise on quality. What is the view of US based business owners and manufacturing engineers on this?

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#1

Re: How do businesses in US view low cost packaging machinery from India & China?

09/27/2009 4:17 AM

Any business in the market for machinery must investigate the additional cost of the compromise of quality over time in repairs and loss of production etc. It is however not always possible to detect hidden bad material, design and workmanship.

In your favour it must be stated that all machines from North America and Europe are not of the best quality either.

The 10% of the price sounds a bit incredulous, somewhat impossible unless someone is subsidized to de-stable the market.

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Guru
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#2

Re: How do businesses in US view low cost packaging machinery from India & China

09/27/2009 8:30 AM

One would also consider such things as customer support and compatibility with existing equipment. And I agree, the initial cost of the equipment quickly becomes inconsequential if a packaging line is down due to equipment breakdown, failure to get prompt servicing, long lead times on spare parts, maintenance, etc. An assembly line is one place where quality and reliability should be the overriding considerations. You would be crazy to buy cheap equipment, unless you had very good recommendations about the quality and reliability of the equipment from a trustworthy source.

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#3

Re: How do businesses in US view low cost packaging machinery from India & China?

09/27/2009 8:32 AM

which typically may cost as little as one-tenth of machinery from Europe and North America,

1/10th the price for packaging material, Than is hard to believe, 60-78% is more believable. If there is any complexity, China or India may have to import. these product, just like USA or Europe. Not every thing is manufactured in the Country of Origin.

of course, with some compromise on quality.

Its the service and upkeep of the equipment that will be the determining factor.

Packaging plays a huge part in the overall scheme, and if package goes offline. Saving initial cost of 30-40% and sacrifice quality of the equipment would be nothing as to compared to downtime.

And if you want respect, stop advertising and pointing out that your machines are cheaper. You want market share, increase quality, dependability and service.

p911

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#4
In reply to #3

Re: How do businesses in US view low cost packaging machinery from India & China?

09/28/2009 1:07 AM

I agree, we as Indian company stop buying local mfg. machines and always import from

Europe and USA. The price is one time cost but poor quality and technology has lone term cost as long as you use those machines.

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Power-User

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#5

Re: How do businesses in US view low cost packaging machinery from India & China?

09/28/2009 2:35 AM

There are cheap machines with poor quality and there are good machines that are cheaper. Especially when it comes to special purpose machines, developing these in India is definitely cheaper.

I know of a US company manufacturing machines now in India, that exports it all over world. The quality, is of course excellent. I am working with US multinatonal, and we bought these machines for Indian operation as well as in Brazil. These were (Europe manufactured)considered not affordable about ten years back and the technology upgradation was delayed. Working fine for over four years now.

Only day before yeasterday, I was taking trials of machine that was locally assembled with some parts being imported from USA. There is partnership with a local businessman to manufacture the machines in India.I am sure, they will localise all parts presently imported from USA after successful initial working of the machines assembled here.

The quality of any product depends on the competency of the people or the organization involved. Since the cost of labour is a fraction of what it is in the west, there is definitely advantage.

We have also bought machines from China, we had problems initially, but the cost of the alternate machines from Europe was simply not affordable.

We have developed machines parts locally for machines that were imported in 70's and 80's at 30% costs over the years to reduce our maintenance expenses.

Internally, we are the lowest cost manufacturers for the products manufactured worldwide. At the same time, we face a stiff competition from local brands and there is need to constantly reduce costs to stay in business in India.

We compete with local manufacturers with the help of local machines and spare parts, apart from cheaper manpower, to keep the multinational competitive in India!

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#6

Re: How do businesses in US view low cost packaging machinery from India & China?

09/28/2009 7:36 AM

There are many Indian mfrs who had collaboration with western world and are producing machines as per parent company's standards. Their machines are well known for their quality. If you can locate such mfrs. then you get benefit of quality at much reduced price. In fact some western companies are procuring machines mfd. in India and branding them with their brand names.

There are also cheaper machines mfrs whose quality is doubtful.

Suresh Sharma.

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Power-User

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#7

Re: How do businesses in US view low cost packaging machinery from India & China?

10/02/2009 10:15 AM

which kind of packaging machinery do you need?

most important things I want to share are

Pay back time

Quality of machine

Quality of packed material

Life of machines

This factors are very important.

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