Products are being prepared in much less time through technology

The number of days it takes for companies to make finished products from raw materials. The Work in Progress Cycle (WIP cycle), i.e. the period taken to prepare the product, has definitely decreased in FY 2024-25.

The raw material cycle shows the total number of days it took for the raw material to reach the production process after its purchase. The finished goods cycle refers to the number of days it takes to sell and dispatch the product after it is ready. Both these cycles have seen some changes compared to a decade ago.

Improved logistics and infrastructure have helped in increasing production efficiency. Companies are now adopting a lot of digital technology to increase productivity.

For example, consumer companies are increasingly using predictive artificial intelligence to anticipate demand. Some companies are taking the initiative to do instant manufacturing. This does not require long-term storage of raw materials.

Younger generation promoters are showing more interest in adopting new manufacturing practices.

Companies that are more dependent on exports are adopting more efficient methods as profitability per product is usually low in large export orders. Exports will give you volumes but efficient methods will need to be adopted to maintain margins.

The pace of improvement may slow down after a certain level, but now awareness has spread and people are taking initiatives to improve manufacturing efficiency. This trend will continue.

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