Dixon Technologies, a company that offers electronics manufacturing services, is entering the electronics components business, making components for itself initially and later opening the market to other players.
According to Mr. Atul B. Lal, the company's venture into electronics components manufacturing is for its phase of growth. Dixon Technologies, which already manufactures smartphones under brands like Motorola and Xiaomi, has even commenced producing laptops for HP and is expanding its facility through a partnership with Vivo.
"We have already rolled out a project for display modules. We are evaluating various other component categories like camera modules, mechanical enclosures and also lithium ion batteries. So we are seriously evaluating and we will be deeply participating in ECMS," said Lal.
"We are going to go beyond captive and in some components India and Dixon is going to be globally competitive. So we are going to become a part of global value chain. We are going to be internally discussing this," he added.
Tata Electronics has put forward a proposal to invest Rs. 2,000 crore in electronics component-making under the government's Rs. 23,000 crore incentive scheme. Launched last month, the scheme aims to boost the production of passive, non-semiconductor components, creating up to 91,600 direct employment opportunities and initiating Rs. 59,350 crore in investments.
Minister Ashwini Vaishnaw cross-referenced that participants in the scheme will be asked to establish design houses and uphold Six Sigma quality standards. Lal said he is happy with the new directives as ELCINA President but warned that the Sigma part may be very difficult for many component makers as a lot of them happen to be small enterprises. Meanwhile, Pankaj Mohindroo from ICEA is hopeful that the scheme would lead to more value addition for the Indian electronics-making sector, making it a long-term sustainable business.