New Delhi, Sep 8 Less than 40 per cent of companies in India's industrial goods manufacturing sector currently use data-driven pricing strategies, offering huge room for future growth, a report said on Monday.
These companies moving to advanced analytics-driven pricing could unlock significant potential in India’s $750 billion industrial goods sector, the Boston Consulting Group (BCG) report said.
The sector currently contributes nearly 13 per cent of GDP, but is lagging behind global competitors due to outdated pricing practices. The firm also noted that more Indian companies are nowadays adjusting their prices more frequently, becoming more agile in responding to market shifts compared with previous years.
The study revealed that more than 60 per cent of companies rely on traditional cost-plus pricing or uniform list pricing, with less than 40 per cent utilising data-driven, customer- or deal-specific pricing strategies. Global players are increasingly using advanced analytics, real-time intelligence, AI-driven insights, and value-based pricing strategies.
"In India’s industrial goods sector, pricing remains largely a back-office function with limited executive ownership and reliance on uniform list pricing. Global peers are shifting to dynamic pricing Games powered by analytics, real-time intelligence, and value-based strategies to unlock growth and margins," said BCG Partner & Director, Kiran Pudi.
Industry leaders need to drive investments in advanced pricing models, digital infrastructure, and organisational design to make pricing a true source of competitive advantage, the firm noted.
Analysts have said that the GST rate cuts on capital goods and industrial inputs will bring down manufacturing costs.
India's industrial growth, based on the Index of Industrial Production (IIP), rose to a four-month high of 3.5 per cent in July, driven by a strong performance in the manufacturing sector, according to the latest data from the government. The industrial growth rate has accelerated in July from 1.5 per cent in June.
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