India’s Emergence as a Manufacturing Destination: A Case Study of Melissa & Doug

A New Manufacturing Landscape

Melissa & Doug, the renowned American toy brand, found itself at a crossroads in February 2021. The company, known for its wooden puzzles, stuffed animals, and play mats, had long relied on Chinese factories for production. However, the global pandemic and escalating trade tensions prompted a reevaluation of this strategy.

Exploring Opportunities in India

In a strategic move to diversify its manufacturing base, Melissa & Doug’s chief supply chain officer visited a factory in Greater Noida, near New Delhi, owned by Sunlord. To the executive’s surprise, the Indian plant demonstrated the capability to produce high-quality wooden toys at competitive prices, comparable to those in China. This led to the initiation of production in India, with Sunlord fulfilling increasing orders for Melissa & Doug.

The Rise of India as a Manufacturing Hub

Amidst geopolitical uncertainties and the need to mitigate risks associated with overreliance on Chinese production, India is emerging as a promising alternative for multinational brands. With the ongoing trade tensions and tariff impositions, companies are increasingly looking towards India as a viable manufacturing destination. Sunlord’s successful partnership with Melissa & Doug exemplifies India’s growing appeal in the global marketplace.

“What they want is 20 to 30 percent of their production being done in India,” stated Amitabh Kharbanda, director of Sunlord. “India has a lot of positive vibes right now.”

• Lockdowns disrupted Chinese factories.
• Trade hostilities between Washington and Beijing were undermining the benefits of depending on plants in China.
• President Donald J. Trump had slapped tariffs on a broad variety of Chinese imports.
• President Biden extended that policy.