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Phone manufacturing to see investments up to Rs 15,000 cr

Friday, 05 Jun 2020
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India can expect investments worth Rs 10,000-15,000 crore in the handset manufacturing space in the next two years due to the government's latest incentive policy aimed at weaning away multinationals producing smartphones from China.

The three areas in the ESDM sector which can be brought to India in two years’ time are printed circuit board assembly (PCBAs), display and the energy source (or battery packs). These three things constitute 50 percent to 55 percent of BoM (bill of materials) in majority of electronic products.

Flex India runs three factories in India, which manufacture smartphones for Xiaomi and Motorola, and laptops for Lenovo.

TechArch also expects components such as PCBAs, camera modules, vibrator rings, speech sensors and speakers can be locally sourced, contributing to 35 percent of value addition to a smartphone. Apart from this, accessories such as chargers, data cables and earphones would be on high priority.

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