The modern business landscape comprises product- or service-based companies, each with its unique operational models and market strategies. Product-based companies are first in bringing innovation through developing, manufacturing, and selling physical products or software. They always evolve and develop to meet the needs of the market. Different premier product-based companies in India have played a key role in improving the economic condition of the country. They continue to make significant investments and contributions in the domestic and international markets.
This blog will deepen your understanding of product-based companies, highlight some of the top Indian product-based companies, and explain how the product-based industry is different from the service-based industry.
Understanding Product-Based Companies
Product-based companies are companies that create, develop, and sell their products, which can be physical goods or software. These companies operate by investing in research and development (R&D) to continuously innovate and improve their products to meet market demands. Once developed, the products are manufactured, marketed, and sold directly to customers or other businesses. Revenue in product-based companies is generated primarily by selling these products, which can be one-time purchases, subscriptions, or licensing fees. The scalability of these products allows these companies to grow and expand themselves to larger markets without increasing their production costs. Product-based companies that are successful in the market continuously focus on innovation, strong branding, marketing, etc. to maintain a competitive edge and drive customer loyalty to the brand or the product.
India’s Premier Product-Based Companies
India has multiple significant product-based companies that have made and are making significant contributions to various companies domestically and internationally. Some of India’s premier product-based companies are as follows:
1. Patanjali
Industry: FMCG, Ayurveda
Patanjali is a leading Indian brand known for its wide variety of Ayurvedic and natural products. It was founded by Baba Ramdev and offers health and wellness products, including food items, personal care products, medicines, etc. The brand offers consumable products like herbal teas, ayurvedic medicines, health drinks, oils, and ghee.
2. MTR Foods
Industry: Food and Beverages
MTR Foods is a popular Indian brand that offers packaged food. It offers convenience and traditional taste in its ready-to-eat meals and spice blends. MTR caters to a wide range of customers and their tastes while keeping up with their evolving needs.
3. Boat
Industry: Consumer electronics
Boat is an Indian electronics brand known for its affordable and stylish electronic items. The company focuses on maintaining and delivering innovative, high-quality products and gadgets to its customers. Boat is very popular amongst the younger audience as it caters to their different budget and style needs. It creates consumable products like earphones, portable speakers, headphones, etc.
4. Oneplus
Industry: Consumer electronics
Oneplus is a technology company famous for its premium-quality and high-performance smartphones, smartwatches, and accessories. It focuses on providing high-end design and performance at competitive prices.
5. Noise
Industry: Consumer electronics
Noise is an Indian brand that specialises in audio devices and wearables. They have a range of earphones, fitness trackers, and smartwatches that are technologically updated, stylish, and cater to technologically updated consumers.
6. Godrej Consumer Products
Industry: Consumer goods
Godrej Consumer Products Limited (GCPL) is a fast-moving consumer goods company in India. It focuses on innovation and deeply understands local markets to meet the different needs of customers. The company offers different products, like:
- Personal care (Godrej No. 1 soaps, Godrej expert hair colour, Godrej nupur henna, etc.)
- Home care (HIT insecticides, Ezee liquid detergent, Good Knight mosquito repellents, etc.).
7. Amul
Industry: Dairy products
Amul is India’s largest dairy brand managed by the Gujarat Coorporative Milk Marketing Federation. It produces quality products to sell at affordable rates. Amul follows a corporate model that supports millions of farmers. Its wide range of dairy products includes amul butter, amul cheese, amul milk, ice cream, ghee, etc.
8. Parle products
Industry: Food and Beverages
Parle Products is famous for Parle-G, the world’s highest-selling biscuit brand. It focuses on providing quality products to its customers at cost-effective rates. It caters to the remotest corners of India with its network reach. Parle products include:
- Biscuits (Monaco, Parle-G, Marie, Hide & Seek, etc.),
- Confectionery (Kismi toffee bar, melody, mango bite, etc.)
- Snacks (full toss, parle wafers, parle namkeen, etc.)
9. Havells India
Industry: Electrical equipment
Havells has become a household name in India because of its innovative, high-quality, and extensive range of products. Its strong domestic and international presence helps it continuously widen its variety of electrical and electronic goods. Some of its products include ceiling fans, water heaters, coolers, lamps, cooktops, kettles, flexible wires, LED lights, mixers, etc.
Product-Based vs. Service-Based Companies
Product- and service-based companies work according to different business models and have different characteristics. Some differences between the two are mentioned below:
| Aspect | Product-based companies | Service-based companies |
|---|---|---|
| Focus | Product-based companies primarily focus on designing, developing, manufacturing, and selling physical goods or software products. | Service-based companies primarily focus on services to be provided to individuals or businesses like consulting, maintenance, training, etc. |
| Revenue generation | The revenue in product-based companies is generated by selling the products which can be one-time purchases, subscriptions, licensing fees, or usage-based fees. | The revenue in service-based companies is generated by providing services like hourly bills, project-based services, retainers, subscriptions, etc. |
| Scalability | Products in such companies can be produced in large quantities at one time when the initial designs and developments are complete. | Services are mostly dependent on human resources to increase the operational capacity to scale further. So the scalability of service-based companies can be limited in comparison to product-based companies. |
| Intellectual property | Product-based companies are dependent on patents, trademarks, and proprietary technologies to protect their products and designs. | Service-based companies mainly focus on proprietary methods and the brand’s reputation more than any trademark or patents. |
| Investments | Product-based companies invest more in research and development to continuously innovate and improve products. | Service-based companies invest highly in human capital by hiring highly skilled professionals and continuing to train humans to provide high-quality services to customers. |
| Customer interaction | Product-based companies have transactional interactions with customers focusing on the purchase and use of the product. | Services-based companies have continuous interaction with customers, and they focus on building relationships with them. |
| Brand building | These companies focus on branding and marketing to build recognition for their brands and achieve customer loyalty. | Services providers focus on building their brand by providing quality and reliable services through experts. |
| Examples | Amul, Parle, Asian Paints, Apple, Boat, etc. | Deloitte India, Tata Consultancy Services (TCS), Infosys, HCL, etc. |
Conclusion
Product-based companies are an important part of India’s industrial and economic success as they cater to innovation and diverse market needs by continuously researching, developing, and investing. Indian product-based companies are shaping industries domestically and internationally to provide consumers with the best products. By understanding the different characteristics and features of product- and service-based companies, it has been disclosed that there are different strategies and methods used to achieve growth and maintain competitiveness.
