Tata Electronics is likely to invest Rs 2,000 crore for electronics components manufacturing under the Rs 23,000 crore incentive scheme launched by the government. According to reports, electronics manufacturing services company Dixon Technologies will foray into the electronics component manufacturing space and use them for captive requirements before looking at exports.

Tata Electronics declined to comment on the query sent in this regard.

Talking about the electronics component manufacturing scheme (ECMS) Dixon CEO Atul Lal says electronics component is the next phase of growth for the company.

"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," Atul says.

"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," Atul adds.

Dixon produces smartphones for various brands, such as Motorola and Xiaomi. It has also signed a deal with Vivo to enhance its manufacturing capabilities.

Union Minister Ashwini Vaishnaw mentioned  that the government will evaluate only those firms for the scheme that have established design houses and uphold the six Sigma process to ensure superior quality in their products.

 

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Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association, stated that the scheme for manufacturing electronic components will boost value addition from the nation, and financial analysts ought to discontinue viewing it as a low return aspect.