Local handset makers eye Rs2K-cr upgrade

NEW DELHI: Home-grown handset manufacturers Dixon Technologies, UTL Neolyncs, Lava International, Optiemus Electronics and Bhagwati (Micromax) are planning to invest a combined nearly ₹2,000 crore to expand their manufacturing capabilities over the next five years, after the government allowed them to avail of production-linked incentives (PLI). Earlier this week, the government approved the applications of 10 mobile phone manufacturing companies, including foreign ones, for incentives under the PLI scheme, which will disburse ₹40,000 crore in five years. The scheme offers an incentive of 4% to 6% on incremental sale of handsets over a base year – financial year 2019-20.Padget Electronics, a wholly owned subsidiary of Dixon Technologies, has committed ₹75 crore to set up its third handset factory in Noida, while UTL Neolyncs, the maker of Karbonn brand phones, will invest ₹100 crore to expand its Noida and Tirupati plants.Optiemus Electronics said it will set aside ₹300 crore to manufacture items including display assemblies and back covers. Contract manufacturer Lava International said it put in ₹800 crore over five years, of which nearly ₹100 crore will be used in the first year itself.As per industry estimates, domestic manufacturers expect to generate over 20,000 direct jobs by end of December. “We will start operations in January in our third handset factory, which will increase our total capacity from 30 million units to 80 million units in the first year,” said Sunil Vachani, chairman, Dixon Technologies. The new 220,000 square feet plant, Dixon’s 11th manufacturing set-up, will specialize in surface mount technology (SMT), assembly, testing and manufacturing batteries.

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