Vedanta Makes its Second Attempt to Setup Display Fabrication Unit

The London-based globally diversified mining company, Vedanta Group, is in talks with the government to develop a display fabrication plant, says the sources close to the organization. This is the second attempt to enter the fabrication zone for Anil Agarwal, an NRI billionaire. He initially had an abortive attempt five years back when the firm first tried to build a gigantic $10 billion plant in Maharashtra in five phases.

The company has merged with LG for the technology. If the discussion is successful, it would be the first display fabrication facility in India, which would elevate the country on the global map with selective players.

However, a display fabrication plant manufacturers screens through a complex method that includes sandwiching pieces of glass with transistor cells and also uses metal alloys and silicon. However, such a plant needs a minimum startup investment of more than $2-3 billion.

Furthermore, the plant assembles the glass with other components that are required to power the screen, and most of the plants also have an assembly unit. Alongside, the sources say that the Ministry of Electronics and Information Technology has invited global and Indian companies to submit an expression of interest by the month-end for setting up the plant.

Moreover, the plant had been proactive in communicating with the company along with other possible contenders. The firm is also in search of potential companies that manufacture LCD, OLED, active-matrix OLED and quantum dot LED-based displays for TVs, PCs, and mobiles. Yet, the final decision would be taken pos the government decides a final policy incentivizing such huge investments.

However, sources state that Samsung is also setting up a display plant for mobile devices with an investment of $705 million. This plant would be the first of its type in India. The experts say that the technology has held certain firms in China, Taiwan, South Korea, and Japan. But, China dominates the LCD market with more than 70 percent share, and Chinese firms have invested $50-70 billion.

In addition, according to estimates, the market for displays in India is pegged at $7 billion but is anticipated to be more than double to $5 billion. However, it is expected to multiply twice and touch $15 billion by 2025, mainly with the expected boost in production and exports of laptops and mobiles.