Optiemus Electronics pact with iPhone maker
Home-grown mobile phone contract manufacturer Optiemus Electronics Limited (OEL) on Tuesday said it will partner the Indian arm of $30-billion Taiwanese giant Wistron Corporation to manufacture mobile devices, IT hardware and automotive-electronic vehicle products.
Wistron, a contract manufacturer of Apple iPhones, and OEL, a multibrand mobile handset maker, were among the 16 entities that will get production-linked incentives (PLI) from the Union ministry of electronics and information technology.
The PLI scheme offers an incentive of 4-6 per cent on incremental sales for a period of five years from 2019-20.
The stocks of Optiemus Infracom gained 4.98 per cent on the BSE following the announcement.
The current partnership is a second calling for both the companies. OEL was earlier formed as a joint venture of stock market-listed Optiemus Infracom and Wistron in 2016. Optiemus Infracom in April this year announced that OEL has become a wholly owned subsidiary and the joint venture with Wistron Corporation has ceased to be effective.
OEL said in a statement on Tuesday that there are plans to invest Rs 1,350 crore in the next 3-5 years taking advantage of the PLI scheme. The investment is aimed at catering to both capex and opex and company officials said the amount can be scaled up in the future.
The company is targeting a revenue of Rs 38,000 crore across multiple product segments while ramping up its manpower to 11,000 in the next 3-5 years. OEL said the joint venture will explore both the domestic and overseas markets from its manufacturing facilities.
The company further said that OEL and Wistron alliance will be able to offer Taiwanese technology at optimised cost and PLI sharing under one roof.
“A world class design and manufacturing infrastructure in India is the need of the hour to fulfil the untapped demand from global players where quality is paramount,” David Shen, president and chief executive officer, Wistron Smart Devices said.
“PLI will be a key enabler to bridge any gaps in the developing ecosystem for the next decade. It is time to extend our support to our Indian partner as we embark on a wonderful and exciting journey together,” Shen said.
OEL has two factories in Noida and the company’s managing director A Gururaj said that the plan is to first utilise the 2 million handsets per month capacity first before planning on further expansion.
“Our expansion plan will largely depend on what the customers would want. If there is a requirement for further capacity, we will do that,” said Gururaj.
Wistron, which has a manufacturing base in Karnataka,had faced worker’s discontent over wages last year.