★ Service 04 / 04

Contract Manufacturing
& OEM Production.

Long-term private-label production from India with dedicated lines, IP protection, and scheduled deliveries on your timeline. Your product, your brand — built by Magnus-managed factories with quarterly business reviews.

Discuss a Programme →View Overview ↓

★ Long-Term Programmes

35+

Programmes

3-7yr

Engagement

100%

IP Safe

★ Overview

Multi-year programmes,
not transactions.

Contract manufacturing is for buyers who want India to make their product, not just supply components. We set up dedicated production lines at vetted Indian factories, with Magnus managing the entire operation: tooling, raw material sourcing, quality, logistics, capacity planning, and continuous improvement.

Magnus contract manufacturing engagements run 3-7 years typically, with annual volumes from 50,000 to 5 million units. You get the cost benefits of low-cost manufacturing without the operational burden of running an India subsidiary. We've onboarded 35+ contract manufacturing programmes since 2018.

At a Glance

Engagement3-7 years

Annual volume50k – 5M+

Setup time4-9 months

Tooling ownershipYours (or shared)

IP protectionFull NDA + control

Active programmes35+ running

★ Setup Process

From RFQ to
first container.

Stage	Timeline	What Happens
Programme Scoping	Week 1-2	Volume forecast, BOM, drawings, target landed cost. Magnus DFM review and commercial proposal.
Supplier Selection	Week 3-6	Magnus shortlists 3-5 capable factories, on-site audits, technical review, capacity planning.
Tooling & Investment	Week 7-18	Tooling design, fabrication, validation. Capital investment plan agreed (you, Magnus, supplier shares).
Sample & PPAP	Week 19-24	FAI samples, PPAP Level 3, capability runs, sign-off on cost and quality before SOP.
SOP & First Shipment	Week 25-32	Start of Production. First container ships. Magnus QC on the floor.
Steady State	Month 9+	Quarterly Business Reviews, continuous improvement, capacity expansion, annual cost reduction.

★ What's Included

Magnus runs
India for you.

Dedicated Lines

Production cells exclusively for your programme — no other clients on same machinery.

Cell allocation
Capacity guarantee
Priority scheduling
Backup capacity plan

IP Protection

NDA, controlled drawing access, ownership clauses, anti-counterfeit safeguards.

NDA with all parties
Restricted drawing access
Tooling ownership terms
Anti-reverse-engineering

QBR Cadence

Quarterly Business Reviews with cost, quality, delivery, and improvement metrics.

Quarterly KPI review
Cost reduction tracking
Quality SPC review
Roadmap planning

★ Engagement Structures

Pick the model
that fits.

Magnus as GC

Magnus is your general contractor, supplier is sub. You pay Magnus, Magnus pays supplier. Most common.

Direct Contract + Mgmt

You contract directly with supplier. Magnus manages day-to-day for a flat monthly fee.

Joint Venture

Magnus + you set up an Indian subsidiary or JV for the programme. For very large volumes.

Build-Operate-Transfer

Magnus sets up dedicated facility, runs it for 3-5 years, then transfers to you. For OEMs going to India.

★ Frequently Asked

Contract manufacturing
FAQs.

Who owns the tooling?

Default: tooling is owned by you (the buyer) and remains physically at supplier site under Magnus management. You can transfer or repatriate tooling at any time with 60-90 days notice. Magnus contractually prevents supplier from running your tooling for other clients. For BOT engagements, tooling ownership transfers to you when the programme transfers.

How do you handle IP risks specific to India?

Indian IP enforcement has improved significantly since the 2010s — patent and design registrations are recognised, contract law is robust, and English-language commercial courts are reliable. Magnus's IP protection strategy: (1) NDAs at every level, (2) restricted drawing access (only what each role needs), (3) split-supplier strategy for sensitive products, (4) Indian patent/design filings if applicable, (5) annual IP audit at supplier sites.

What if my volume forecast changes significantly?

Forecast variations of ±20% are absorbed without supplier penalty (built into the original capacity agreement). For larger changes: (1) +30-50% requires 6-month notice for capacity expansion, (2) -30% triggers reduced capacity allocation but no penalty, (3) major reductions (>50%) may trigger amortisation make-good if tooling investment was supplier-funded. We structure contracts to give you flexibility without leaving suppliers stranded.

How are price escalations handled?

Standard structure: (1) Annual price reviews tied to inflation indices (typically Indian WPI or commodity-specific indices), (2) Material pass-through clauses for steel, aluminum, copper — automatic monthly adjustments if commodity moves >5%, (3) Quarterly cost-down obligations on supplier (typically 2-4% per year on labour/overhead), (4) FX hedging built in for USD/EUR pricing if exposure is significant.

Contract Manufacturing& OEM Production.

Multi-year programmes,not transactions.