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Foreign Players See Potential in PLI for Tech Products SURAJEET DAS GUPTA Quanta, Compal, and Inventec PLI Scheme Will Help Make Potential

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Foreign Players See Potential in PLI for Tech Products SURAJEET DAS GUPTA Quanta, Compal, and Inventec PLI Scheme Will Help Make Potential Foreign players see potential in PLI for tech products SURAJEET DAS GUPTA Quanta, Compal, and Inventec PLI scheme will help make potential. Lava International, New Delhi, 25 February did not respond to queries. Flex India a global hub for the man- selected for PLI benefits in has already tied up with HP to ufacture of telecom, computer, making mobile devices, will Initial reactions to the govern- make desktop computers and and networking products. The take a final call soon. ment’s Production Linked workstations at its plant near PLI scheme offers an incentive Sunil Vachani, CMD of Incentive (PLI) scheme, Chennai. Earlier, HP had been rate of 2-4 per cent for four Dixon Technologies, has con- announced on Wednesday, manufacturing at its own plant years on laptops with an firmed the company will apply have been positive with global in Pantnagar in Uttarakhand. invoice value of ~30,000 and for the PLI. electronic manufacturers of Lenovo India has said it tablets with an invoice value of “There are hardly any man- laptops, tablets, computers, would like to increase its lap- ~15,000 for global players, pro- ufacturers of these products in and mobile phones, showing top-making capacity by 10x at vided they make an investment India and the bulk is imported. interest in participation. its Puducherry plant and also The PLI scheme may help make India a global hub for the of ~500 crore in this period. Also, the government is buying The scheme is aimed at pro- manufacture tablets. manufacture of telecom, computer, and networking products Firms have to make incre- large volumes of PCs with a moting local manufacturing Lenovo did not respond to mental sales of ~1,000 crore in preference for Made in India and export of these items. a query about whether it plans tablets, say sources who track low’ as the cost disability with the first year, going up to products. So, there is a large Companies such as Flex in to participate in the scheme the company. Apple declined China, which dominates this ~10,000 crore in the fourth year. market for domestic produc- Singapore and Foxconn, directly or through its vendors. to comment. market, is over 20 per cent. For domestic entities, the tion as an EMS player and also Wistron, Pegatron Quanta However, Apple, which has The reason some global PC “The scheme looks more for investment criterion is ~20 from exports,” said Vachani. Computers, Compal, and tied up with three Electronics brands may not opt for the PLI import substitution rather than crore and incremental sales He added that while the Inventec in Taiwan are consid- Manufacturing Services (EMS) scheme, say analysts, is that it exports, as India imports the have to rise from ~50 crore in minimum investment require- ering applying for the incen- players to manufacture mobile is not too attractive for exports. bulk of its laptops and tablets the first year to ~300 crore in ment is ~10 crore, Dixon is look- tive, according to sources. devices under the PLI scheme, An executive of a leading global from China and makes very lit- the fourth year. ing at building a larger plant While Flex and Wistron said might not show the same laptop brand said the 2-4 per tle in India,” he said. This is why domestic with a minimum investment of they will not comment, enthusiasm for laptops and cent incentive rate was ‘very The government hopes the players are leveraging this ~100 crore. .
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