Contract Manufacturing

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What is Contract Manufacturing / Private Label?

In contract manufacturing, the contract manufacturer, also known as third-party manufacturing firm manufactures products as per the design and specifications of the company that has outsourced and the buyer then sell the products under its own brand name. A company can outsource its entire manufacturing process or a part of the process to one or more third-party manufacturers as per its requirements. Both large OEMs with huge customer orders as well as small companies with lack of proper manufacturing facilities and capabilities usually go for contract manufacturing process.

Contract manufacturing is one of the most popular business association these days across several industries including but not limited to Pharma, chemical, food, FMCG, textile, toy, automobile, packaging, electrical and electronics, etc. Contract manufacturing is quite popular in global arena. However, the contract manufacturing market has gained momentum in India recently in past few years and the market is going to register a significant growth in India in future, considering the low manufacturing cost.

Advantages of Contract Manufacturing

Contract manufacturing offers several benefits that make it the most preferred choice for many companies cutting across several business verticals.

Enables More Productivity in Business 

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Give Brands Space to do More R&D & Marketing

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Cost Effective & Less Labour Cost

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Enables Operational Efficiency

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Helps Brands Build Quality Products

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Decreased Time to Market

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