Why Indian Manufacturers Struggle with Off-the-Shelf ERP
India’s manufacturing sector has highly specific workflows — job work (subcontracting), multi-currency BOM for imported components, GST compliance with HSN codes, e-way bills, and industry-specific quality standards. Most global ERP platforms were not designed for these requirements. The result: heavy customisation that often costs more than the licence itself.
The Real Total Cost of SAP / Oracle
Licence: ₹20–50L/year for mid-size manufacturers. Implementation: ₹50L–₹3Cr. Annual maintenance: 18–22% of licence. Customisation for India-specific requirements: ₹15–40L additional. A conservative 5-year TCO: ₹3–8Cr.
What Custom ERP Actually Costs
A focused custom ERP covering production planning, BOM management, job work tracking, quality, and inventory: ₹20–60L for development. No annual licence. Maintenance: ₹3–8L/year. Your workflows, your terminology, your reports — exactly as you need them. 5-year TCO: ₹40–100L.
When Custom ERP Makes Sense
Your business has workflows that do not fit standard ERP modules. You have tried SAP/Oracle and spent more on customisation than the licence. You want deep integration with your shop floor PLC systems. You need reports in formats your customers require.
If you are spending more on ERP customisation than on the licence itself, you are a candidate for custom ERP. The break-even point is typically 3–4 years versus premium off-the-shelf.
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