Evaluating Relocation of Manufacturing Operations to India

Automotive Management Consulting

Client Challenge

The client is a global player involved in the large-scale manufacturing of medical orthopaedic solutions. The client requested UC to compare the cost of products manufactured at its home facility in the USA with the cost of manufacturing the same in India.

Our Approach

UC adopted the following approach:

  • Triangulate findings with data from primary and secondary research with respect to major cost heads
  • Assess cost differential across key types of raw material
  • Define factors and assumptions for variances in efficiency/productivity through primary and secondary research
  • Assess applicability of duties considering location 

Our Impact

The client received a model comparing the cost heads at a line item level between the cost of having manufacturing operations in the USA with the cost of having manufacturing operations in India.

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