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The case examines the reasons behind Ellora Time Pvt Ltd, the leading Indian clocks and calculators manufacturer''s decision to shift its production base from India to China. The case explores in detail the differences in the regulatory set-up in India and China that has made manufacturing in China much more lucrative and profitable. The case also briefly mentions the reasons for China''s popularity as a manufacturing destination for companies all over the world. The case is structured to enable students to: (1) understand the impact of competition from a ''low-cost'' country that can pose a threat to the domestic manufacturing company; (2) evaluate the basic differences between the manufacturing environment and the regulatory regime of India and China; (3) determine the factors, which were critical in Ellora''s decision to move the manufacturing facility from India to China; (4) evaluate the impact of the decision on the future of the company, its diversification plans and its performance in domestic and export markets; and (5) discuss the consequences of the decision of the company to shift the production facility to China and its impact on the manufacturing sector in India. The case is aimed at MBA/PGDBA students and is intended to be a part of the production and operations management curriculum.