Original equipment manufacturer, when NIKE purchased

stitched cloth from Tirupur (Tamilnadu) mills for its own

branded T-Shirts, NIKE sold the T-Shirt to the end user

through its own sales team and brand name, then NIKE was

called the OEM in relation to the particular Tirupur mill.

In definition, a company that uses a product made by

another company in its own product and sells the product of

the second company under its own brand is called OEM.