My family has been in the forging and machining industry since 1964. We are a third-generation manufacturing business based in India, primarily serving the agricultural machinery industry.
Unfortunately, due to a few issues, we had to stop most of our major operations over the last 10ā15 years. These operations used to contribute a significant portion of our revenue.
Now, as the third generation, I am trying to revive those operations and rebuild the business. I have been exploring multiple opportunities within the same industry, working with smaller companies and targeting the aftermarket, but I am also looking at the bigger picture.
Since we have been manufacturing agricultural components for nearly six decades, several established companies already know our name, even though we are not currently in direct contact with their purchasing teams.
I am considering approaching major tractor and agricultural machinery OEMs such as Mahindra, Sonalika, and others with a proposal.
The idea is to explain our manufacturing history, our experience in forging and machining, and our plans to restart and expand our operations. Instead of investing heavily first and then searching for customers, I want to ask whether they would be willing to consider us as a supplier and provide some form of supply commitment, subject to their technical and quality approvals.
Based on their requirements, we could then build or upgrade our factory, purchase the necessary machinery, and develop our capabilities accordingly. Having a confirmed business opportunity would also help us approach banks for financing and justify investing at a larger scale.
However, I have two major concerns.
Will established OEMs take this proposal seriously? Would a company like Mahindra or Sonalika consider a manufacturer that wants to build its capabilities around their requirements, or would they simply reject us because we do not currently have the required infrastructure?
Could this damage our reputation in the long run? These companies may reject the proposal today because our current factory is not equipped to meet their requirements. If I approach them again after a few years with better machinery, infrastructure, and capabilities, could they remember the earlier approach and perceive us as a small or incapable supplier?
I donāt want to come across as a struggling manufacturer asking for business. I want to position our company as an experienced manufacturer looking to rebuild its capabilities and establish long-term OEM partnerships.
At the same time, I understand that asking a large company to commit to purchasing products before we have the required infrastructure may be unrealistic. They would need confidence in our quality, production capacity, financial stability, and ability to deliver consistently.
For people experienced in manufacturing, B2B sales, or OEM procurement:
Is this a viable strategy?
What kind of commitment could I realistically ask for before investing?
Should I approach their procurement teams directly, or first try to get our company registered as a potential supplier?
Would it be better to approach them with specific components and a clear investment plan rather than asking for a general supply commitment?
I would appreciate honest opinions, especially from people who have worked with large OEMs or built manufacturing businesses from the ground up.
I am trying to revive a family business with a history going back to 1964, and I want to take calculated risks rather than invest a large amount of money without knowing whether there is a market for the capacity we build.