Many Indian export businesses are traders. They buy from a manufacturer, add a margin and sell on. There is nothing wrong with that as a business, but it matters to you: a trader cannot control quality on a line they do not run, cannot show you the real production site, and adds a layer of cost and delay between you and the factory.
The problem is that traders often present themselves as manufacturers. The website shows a factory, the emails say "our plant", and the samples are good. The difference only shows up when something goes wrong.
Five checks that settle it
- Ask for the factory licence and the registered address of the production site, then check that the address matches the company you are dealing with.
- Ask for a live video call from the production floor, unannounced, with your product being made. A trader will offer a recorded video or a visit "next month".
- Ask who signs the export documents. If the exporter on the invoice is a different company from the one you have been talking to, you are dealing with a trader.
- Ask for the names of two other overseas buyers of the same product and contact them.
- Send someone to visit. An on-site audit is the only check that cannot be faked.
What to do if it is a trader
You can still buy through a trader if you know what you are buying: convenience and consolidation, at a margin, with less control. What you should not do is pay a manufacturer's deposit to a trader on the assumption that they control production.
If you want the factory relationship, ask the trader to introduce the manufacturer and contract directly. Many will, for a fee. If they refuse, you have your answer.