- The government of India has recently notified three electronics manufacturing schemes worth approximately Rs 50,000 crore
- Initially, the PLI schemes aims to create five national champions and bring five global champions in India
The recently announced electronics manufacturing schemes, as notified by the government of India, aim to make the country a global destination of electronics manufacturing and an asset to the overall electronics value chain. Recently, India-based Dixon Technologies has shown interest in applying for the scheme.
Looking at the terms and conditions specified by the government, it appears as the likes of Samsung, Wistron, Foxconn and others might apply for the same. While many of these are already making in India, they will have to further intensify their manufacturing capabilities locally in the country.
Samsung has world’s largest mobile manufacturing factory in India
Korea-headquartered Samsung Electronics, not long back, had inaugurated world’s largest mobile manufacturing facility in India. Precisely announced in 2018, Samsung had said that it plans to manufacture 120 million units a year at the facility.
As a matter of fact, the company has been manufacturing mobile phones in India since 2007. The company has been populating Printed Circuit Boards (PCBs) right from its inception and is aligned with the Government of India’s Phased Manufacturing Programme (PMP) goals.
Samsung had reported KRW 230.40 trillion in revenue and KRW 27.77 trillion in operating profit for financial year 2019. It’s IT & Mobile Communications Division (IM) had posted KRW 24.95 trillion in consolidated revenue and KRW 2.52 trillion in operating profit for the fourth quarter of 2019.
Another smartphone maker who might apply for the same is BBK operated Oppo. It is to be noted here that Oppo has made significant growth both in India and other markets. BBK, under its umbrella, also operates Vivo, Realme, Iqoo and OnePlus brands. The company is steadily foraying into more verticals including TVs and smart wearables through its brands.
Foxconn and Wistron
The likes of Wistron and Foxconn also make for strong candidates who might apply for the PLI schemes. Economics Times had earlier reported that Wistron was looking to invest around Rs 1,300 crore in India. If some other reports are to be believed that the Taiwan-based company is also thinking on moving one-fifth of its production capacity from China to India.
Wistron’s global consolidated revenue figures in 2019 stood at NT$878.26 billion.
Similarly Foxconn, who contract manufactures for brands including Apple, might also apply for the schemes. The company had emerged as the number one smartphone Electronics Manufacturing Services (EMS) company in India during 2018, according to a report by Counterpoint.
Xiaomi and Nokia were its primary partners in 2018. The top three EMS companies had manufactured 82 per cent of the total Indian smartphone shipments in 2018.