Consumer product companies in India are increasingly turning to insourcing or in-house production for premium categories, sensing a growing need to have greater control over quality. While contract manufacturing or outsourcing remains a cost-effective method of handling production, insourcing is also gaining ground.

The move is also linked to the need of doing away with costly imports at a time when the rupee is depreciating fast.

Companies admit that limiting imports is important when currency fluctuations are severe. Firms such as Procter & Gamble, L'Oréal and Wipro Consumer Care are all opting to insource or produce in-house those goods that require stringent quality control. The trend is no different with consumer durable companies.