Understanding Manufacturing cost: India or UK/Europe

[J_Ban]

I am considering starting an extruded snack business, with the option to import snacks manufactured and packed in India. What most cost-effective approach: importing these snacks from India or manufacturing them locally in the UK or Europe? Your expertise and insights would be greatly appreciated.

 

[NickZ]

I think it'd be wiser to manufacture the food in the UK.
Permits might be easier to do it in the UK then importing ready made foods from India.

 

[Mark T Jones]

You need to consider

Lead times

Order quantities / frequency

Shelf life

Food regs

Amongst other things

 

[Paul Kelly ICHYB]

See where your competitors get them made!

Sourcing abroad increases lead time and logistics, but can result in a saving. On the negative, managing quality control and basic manufacturing (H&S) if you ae not there can be a nightmare.

 

[mahad]

India is a great choice on paper, potentially lower cost of production and so on, but remember the cons India is quite away from UK, so you'll need Logistics setup and then your product will need to be inspected rigorously to make sure it meets the safety requirments for the UK, after all we have seen those viral videos of Indian street food.

 

[NickZ]

India is a great choice on paper, potentially lower cost of production and so on,

are you from India?

 

[sdob]

A few things to consider.
- import duties cost
- transport costs
- cash flow implications of long shipping times
- shelf life
- commercial story
- travel time and cost in case of problems

Eg:
EU has preferential original = 0 duties. What is the cost from India?
Transport from EU to UK is days, not a month

Just a few thoughts.

 

[NickZ]

India is a great choice on paper, potentially lower cost of production

Are you from India?