Household and Institutional Furniture Manufacturing Business Guide
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We documented 30 challenges in Household and Institutional Furniture Manufacturing. Now get the actionable solutions — vendor recommendations, process fixes, and cost-saving strategies that actually work.
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All 30 Documented Cases
BOM में काल्पनिक सामग्री धोखाधड़ी
₹50,000-2 लाख annual supplier kickback losses; 1-3% inventory shrinkageManual BOMs allow insertion of fictitious parts; no freeze/unfreeze leads to unauthorized changes post-approval[6]. Common in untracked consumables like glue[2].
आयात मूल्य कम आंकना और गलत घोषणा (Customs Duty Evasion via Undervaluation)
₹30 crore customs duty evasion (July 2025 case); ₹20+ crore in earlier May 2025 case; Gross undervaluation of 70-90% of actual transaction valueComplex undervaluation racket involving dummy importers (IEC holders), overseas shell entities in Dubai/Singapore, fabricated invoices, and local intermediaries. Branded luxury furniture sourced from Italian/European suppliers invoiced through shell companies but declared as unbranded at significantly reduced rates. Post-clearance, goods transferred on paper to actual beneficiary while physically shipped directly to customer.
Freight Rate Benchmark Loss और Poor Vendor Selection
₹2,000-10,000 overpayment per shipment (15-25% intermediary margin); ₹5,00,000-50,00,000 annually for mid-sized manufacturer (100+ shipments/month)Decision errors in freight coordination: (1) No visibility into market freight rates; (2) Multiple intermediary markups creating hidden costs; (3) Vendor selection based on relationship, not performance; (4) No real-time service quality metrics (on-time delivery %, damage rates); (5) Contract terms locked without benchmarking.
डमी आयातक और शेल कंपनियों के माध्यम से IEC दुरुपयोग (Dummy IEC Holders and Shell Entity Abuse)
₹30 crore duty evasion via dummy IEC abuse in single case; Estimated ₹20+ crore in related case (May 2025); Multiple active networks under investigationDivine Enterprises existed only on paper; Sambhaji Bhosale's Sam Furniture IEC used to import branded goods under false unbranded declarations; goods shipped directly to Di Lusso warehouse in Bhiwandi, completely bypassing Divine Enterprises. Shell companies in Dubai and Singapore used for actual invoicing while dummy Indian entities created fictitious supply chain.