Latest news with #Vachani
Economic Times
5 days ago
- Business
- Economic Times
Dixon awaits govt nod to make displays for sub-Rs 15k phones jointly with HKC
The company filed its application about six weeks ago and is now awaiting clearance, as the proposal falls under Press Note 3. Under this rule, India requires prior approval for foreign investments from countries with which it shares a land border. These include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads PARIS: Electronics contract manufacturer Dixon Technologies is awaiting government approval to produce display modules for mobile phones priced below Rs 15,000, as well as for laptops and tablets, in partnership with China-based display firm HKC , said Sunil Vachani , chairman of the company filed its application about six weeks ago and is now awaiting clearance, as the proposal falls under Press Note 3. Under this rule, India requires prior approval for foreign investments from countries with which it shares a land border. These include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan."We have recently filed the application," Vachani said, adding that the company will explore alternative manufacturing options if approvals are not noted that if India's free trade agreements with the EU and the US materialize, the country could aim for $100 billion in annual emphasized the need for companies to look beyond mobile phone manufacturing and expand into laptop production."They can be easily manufactured and scaled up with high value addition," he India imports $15 billion worth of IT products boost its IT hardware manufacturing , Dixon Technologies has formed a joint venture with Taiwan-based Inventec Vachani also said that Korean and Taiwanese companies involved in display technology for mobile phones have exited the sub-?15,000 segment.(The correspondent is in Paris at the invitation of the commerce and industry ministry.)
Time of India
7 days ago
- Business
- Time of India
Dixon awaits govt nod to make displays for sub-Rs 15k phones jointly with HKC
PARIS: Electronics contract manufacturer Dixon Technologies is awaiting government approval to produce display modules for mobile phones priced below Rs 15,000, as well as for laptops and tablets, in partnership with China-based display firm HKC , said Sunil Vachani , chairman of the company. The company filed its application about six weeks ago and is now awaiting clearance, as the proposal falls under Press Note 3. Under this rule, India requires prior approval for foreign investments from countries with which it shares a land border. These include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan. "We have recently filed the application," Vachani said, adding that the company will explore alternative manufacturing options if approvals are not granted. He noted that if India's free trade agreements with the EU and the US materialize, the country could aim for $100 billion in annual exports. Vachani emphasized the need for companies to look beyond mobile phone manufacturing and expand into laptop production. "They can be easily manufactured and scaled up with high value addition," he said. Currently, India imports $15 billion worth of IT products annually. To boost its IT hardware manufacturing , Dixon Technologies has formed a joint venture with Taiwan-based Inventec . Vachani also said that Korean and Taiwanese companies involved in display technology for mobile phones have exited the sub-?15,000 segment. (The correspondent is in Paris at the invitation of the commerce and industry ministry.)
Time of India
7 days ago
- Business
- Time of India
Dixon, Florence see silver lining in Trump's tariffs
PARIS: They are a study in contrast: One is an electronics goods maker, the other a footwear manufacturer. One has its base in Chennai, the other up North. But, both are focusing on ramping up at breakneck speed, hoping to cash in on overseas players seeking to tap India, not just for its domestic market but also for exports, especially after Trump's tariffs. Tired of too many ads? go ad free now The other similarity is scale. Electronics goods supplier Dixon Technologies, which has been busy with tie-ups to manufacture phones, laptops and consumer durables, is seeing a huge uptick in export orders from the US as countries seek to reduce reliance on China. "Indian market is around $40 billion, the US has imports of around $80 billion. In the next few years, we see a $100 billion export opportunity in the US and EU," said Dixon Technologies chairman Sunil Vachani. If it is smartphones that have seen a massive surge in production, it will be laptops in the next few years as companies look to first meet the domestic demand before venturing into exports, he said. "We missed the opportunity during Trump 1, when Indian companies were not ready. But now we have built scale, we are designing our own products. We have a foot in the door, and we will be like Vietnam in a few years once the component ecosystem is also developed," Vachani added. In Chennai, Florence Shoe Company chairman Aqueel Panaruna, whose family was in the leather footwear business, is manufacturing a million pair of sports shoes for one of the top global brands. His company is also a joint venture partner with Hong Fu, the world's second largest sports shoes maker for the likes of Nike and Adidas, to set up a $300 millon plant that can produce 10 million pairs of shoes. While the new quality control norms on footwear has driven global majors to eye more production in India, the shift began soon after Covid, with who's who of sports shoes, from Nike, Adidas, Puma and New Balance, tying up with local players to meet global and domestic demand. Tired of too many ads? go ad free now For Florence, the challenge in recent years has been the growing dependence on the US, which now accounts for around 80% of its exports, compared to 25% a decade ago. Trump's tariffs have added a 10% additional burden, with shoes now attracting up to 30% customs duty. But Panaruna is not worried. He is in fact banking on the trade deals with the US, UK and EU offering possibilities for more sourcing from India. "If the Hong Fu experience is good, we may see some of the factories shift from Vietnam to India," he said. "With displays and camera modules to be produced in India, value addition in mobiles could rise from 17-18% to around 40% in the next two-three years, nearing China's level of 50-55%," Vachani said.
Time of India
7 days ago
- Business
- Time of India
Dixon awaits govt nod to make displays for sub-Rs 15k phones jointly with HKC
The company filed its application about six weeks ago and is now awaiting clearance, as the proposal falls under Press Note 3. Under this rule, India requires prior approval for foreign investments from countries with which it shares a land border. These include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads PARIS: Electronics contract manufacturer Dixon Technologies is awaiting government approval to produce display modules for mobile phones priced below Rs 15,000, as well as for laptops and tablets, in partnership with China-based display firm HKC , said Sunil Vachani , chairman of the company filed its application about six weeks ago and is now awaiting clearance, as the proposal falls under Press Note 3. Under this rule, India requires prior approval for foreign investments from countries with which it shares a land border. These include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan."We have recently filed the application," Vachani said, adding that the company will explore alternative manufacturing options if approvals are not noted that if India's free trade agreements with the EU and the US materialize, the country could aim for $100 billion in annual emphasized the need for companies to look beyond mobile phone manufacturing and expand into laptop production."They can be easily manufactured and scaled up with high value addition," he India imports $15 billion worth of IT products boost its IT hardware manufacturing , Dixon Technologies has formed a joint venture with Taiwan-based Inventec Vachani also said that Korean and Taiwanese companies involved in display technology for mobile phones have exited the sub-?15,000 segment.(The correspondent is in Paris at the invitation of the commerce and industry ministry.)
Time of India
7 days ago
- Business
- Time of India
Dixon seeks government nod for tie up with China's HKC to make display modules
India 's leading contract manufacturer Dixon Technologies has sought the government approval for its proposed tie-up with China-based firm HKC to manufacture display modules for smartphones, laptops and tablets, said its Executive Chairman Sunil Vachani. The approval is required under the rules of Press Note 3 of 2020. In this, the government has made its prior approval mandatory for foreign investments from countries that share a land border with India. They need approval for investments in any sector. Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan. "HKC is one of the large companies as far as the display tab is concerned. So we plan to partner with them for putting up a display module factory (in Noida), catering to mobile phones, laptops and televisions. We are looking at a minority stake for them. We have already filed the application (before the government)," he told PTI here. He is part of the business delegation accompanying Commerce and Industry Minister Piyush Goyal. He also said that the company is scouting for more partnerships and alliances to deepen the manufacturing ecosystem in the country for diodes and components, among others. Dixon, which has partnered with French group Dassault, is sensing a good opportunity coming from factory automation, where the companies are upgrading their production units into smart manufacturing. "The factories are going to be much more smarter. There is going to be a digital transformation. Dixon and a lot of MSMEs are also looking at Industry 4.0 initiatives, where the machines talk to each other. There is a lot of data coming out of the factory," he said. He added that this is the area where there is a huge potential for collaboration between Indian and French companies. According to Vachani, Dixon has partnered with Dassault to roll out initiatives on smart manufacturing. Industry 4.0, also known as the Fourth Industrial Revolution, refers to the rapid technological advancements and the integration of digital technologies into manufacturing and industrial processes. It involves a wide range of technologies like the Internet of Things (IoT), AI, robotics, and automation, enabling smart manufacturing and creating intelligent factories. "So we at Dixon ourselves have a very large budget on digital transformation, because we are in the process of making all our factories smart. We are in the process of rolling out the manufacturing excellence software in partnership with Dassault across all our factories," Vachani added. Dixon, he said, plans its unit to be recognised as a "lighthouse factory", which refers to a manufacturing plant that is a leader in adopting and integrating advanced technologies, primarily related to Industry 4.0. "So this is a very big initiative, and I think what it is going to result in is that we are looking at qualifying for the lighthouse factory, which is a global recognition. So that's the ultimate aim that we want a lot of our factories to be certified as lighthouse factories," he said. Over the requirement for a second round of the PLI (production-linked incentive) scheme for more components required by the domestic industry, he said, "I think the industry is satisfied with the list of components that are already there". Most of the high-end components, such as camera, display, etc, are already covered under it. "Dixon itself is in the process of rolling out production across each of these components that we talk about, some through partnerships, some on their own. We are looking at the battery. The list is exhaustive. We don't need anymore. And I think the government has done the job. As far as the component PLI is concerned, the ball is in the industry," he said. When asked about the total investment by Dixon, Vachani said, "In the components, PLI is going to be in excess of Rs 1,200 crore" and will invest further Rs 400 crore in the display module. Dixon will set up a plant at Noida, Uttar Pradesh, which will be a greenfield investment. Dixon Technologies and Vivo India have formed a joint venture to establish an OEM (original equipment manufacturer) facility in India, focusing on manufacturing smartphones and other electronic devices. Dixon will hold a majority stake (51 per cent) in the venture, while Chinese smartphone maker Vivo's India business will own 49 per cent. "We will have a capacity of almost 60-70 million mobile phones a year, plus, hopefully, the capacity that we plan to do jointly with Vivo should happen by next year. So overall, we'll have a capacity of 100 million mobile phones," he added.
