Optiemus Electronics aims Rs 38,000 cr revenue in 3-5 yrs, ties up with Wistron

Electronics manufacturing services company Optiemus Electronics on Tuesday announced a strategic partnership with Apple's contract manufacturer Wistron to boost production.

Optiemus Electronics Ltd (OEL) Managing Director A Gururaj said OEL will invest Rs 1,350 crore over the next 3-5 years under an agreement signed between the two companies mainly to boost production of mobile devices and telecom gears. OEL expects to generate revenue of Rs 38,000 crore in the next 3-5 years from electronics manufacturing services (EMS) and create 11,000 jobs.

"These (Rs 38,000 crore revenue) projections are based on two PLI schemes drafted by the government in which targets have been set. The investment of Rs 1,350 crore will be invested in mobile phones and telecom products over a period of 3-5 years," Optiemus Infracom Chairman Ashok Kumar Gupta said. Optiemus is among the EMS companies that have qualified for the production linked incentive (PLI) schemes.

Gupta said the investment will be increased gradually as per business growth. OEL is a subsidiary of listed firm Optiemus Infracom. It has two manufacturing plants in Noida, Uttar Pradesh with a total combined manufacturing capacity of 20 lakh devices per month.

"Demand for electronics has been growing. Production Linked Incentive (PLI) scheme has started a new chapter in the Indian electronics manufacturing sector. "With partnership with Wistron, Optiemus will focus on manufacturing of mobile devices, personal computers, electric vehicles etc. Optiemus and Wistron Corporation will jointly explore the possibilities of catering to both domestic and overseas customers through OEL's manufacturing facilities," Gururaj said.

OEL has worked with Blackberry, LG, HTC, Jio etc when Wistron was its joint venture partner. OEL recently announced to make products for smart devices and accessories company Noise.

"We see India as a very big valuable market and we need a local partner. We will work together to help build OEL very good foundation. We see very good opportunities in terms of 5G mobile phones, IT hardware notebook, desktop including future cloud computing. "Very soon we are going to get into an energy car which is an electronic vehicle. We are also getting into AIoT (artificial intelligence based IOT) devices where we can leverage India's engineering capability to create solutions for local and international markets," Wistron Smart Devices president and CEO David Chen said.

Gururaj, who was earlier heading Wistron India business, said both the firms have come together again to address the boom in the electronics manufacturing sector.

"Wistron is a big friend of India. Telecom related businesses have grown significantly in the country. I have seen this growth in small and medium EMSs. We will also look at automotive and electric vehicles. These are the focus areas and we will evolve as we go forward," he said.

"We will work jointly with Wistron for customer acquisition," Gururaj said.