Yikes that's definitely not budget. Outsourcing part of your process to a cheaper supplier is a pretty well worn route of lowering costs, but it's hard to make sense of this as if they're attempting to market it at a higher price than their own brand bats.
Outsourcing to India is no longer a cheaper option generally. Prices generally have caught up to raw cost prices over here mainly due to shipping charges going through the roof, plus having to factor in import duties.
Arguably it would be cheaper for AK to just buy finished bats from India than doing half the process there and half here, but raw costs in India are astronomical compared to what they used to be.
To give you some context, I ordered a batch of junior sample bats from a few subcontinent suppliers, they all cost me more than if i were to make them here, with the exception of the very low grade stuff.