In response to the shifting global trade environment, particularly the 10% tariff increase on Chinese goods introduced by the Trump administration, our company has strategically adapted its business strategy to mitigate potential impacts and maintain a competitive advantage. One of the key steps in this adaptation is establishing a manufacturing facility in India that specializes in melamine tableware and stainless steel products. This strategic move not only diversifies our production capabilities but also enhances our ability to meet international market demands efficiently and effectively while sidestepping the additional costs associated with tariffs imposed on Chinese exports.
Impact of Tariffs on Business Strategy
Introducing tariffs on Chinese goods has significantly altered the cost structure for many companies operating within or exporting from China. To remain competitive and provide customers with cost-effective solutions, we have invested in alternative manufacturing locations. By establishing the factory in India, we can continue serving our global clientele without being subjected to the increased import duties that would otherwise apply to products manufactured in China. This allows us to offer stable pricing and maintain our competitive edge in the marketplace.
Overview of Indian Factory
Category | Details |
Nature of Business | Joint venture factory in Alwar, Rajasthan, India; Producing both melamine and stainless steel products |
Establishment Date | Founded in 2018 |
Investment Amount | USD 5 million |
Annual Export Value | Approximately USD 1.5 million |
Factory Area | 6,000 square meters |
Port of Shipment | Mundra Port |
Number of Machines | Currently 20 molding machines for melamine products; plan to add another 20 by 2025; specialized equipment for stainless steel product manufacturing |
Delivery Lead Time | 50 to 65 days, according to the order quantity |
Certifications | SMETA, ISO certified |
Audit Status | Preparing for Target and Tupperware audits; The Tupperware audit is scheduled for the end of January, and the Target audit at the end of February |
Main Markets | United States, South Korea, India |
Key Customers | Amazon, KORDCO, CINDOR, HNH HOTELWARES |
Primary Products | Produces both solid color and decal melamine products, with a focus on solid color products; also manufactures high-quality stainless steel items |
Excellence in Manufacturing
Indian factory leverages its strategic location and advanced machinery to produce high-quality melamine tableware and stainless steel products that cater to a diverse clientele. The factory’s commitment to excellence is reflected in its certifications and ongoing efforts to comply with international standards, as evidenced by the preparation for Target and Tupperware audits. With plans to expand its machinery and continuously improve its production processes, the factory aims to solidify its position as a leading manufacturer in both industries. As global trade policies continue to evolve, our Indian factory stands ready to adapt and thrive in the dynamic market environment.