Manufacturing services unicorn Zetwerk has said the Indian government needs to open up the production-linked incentive (PLI) scheme with no riders to attract more companies in the Android smartphone space.
The current scheme “choked” growth opportunities in the Android space, Zetwerk Electronics president Josh Foulger said.
“The PLI for mobile has, in a way, choked the growth opportunities in the Android space. Apart from Samsung, the rest of the ones [Android phone makers] have just sort of been servicing the domestic market instead of the export market,” Foulger told Moneycontrol. "PLI worked for this North American company [Apple]...they have created jobs. Apart from that, we are flatlined."
Foulger, a member of the task force set up by the government to achieve a $300 billion electronics export target by FY 26, said the PLI 2.0 scheme for mobile phones should be modelled on the revamped plan for IT hardware.
“The government understands that there is a PLI choke. They need to open it up with no riders and backward and forward integration for exports. These things they need to look at for PLI 2.0,” he said.
The former managing director of Foxconn company Bharat FIH said Zetwerk will also apply for the PLI scheme for mobile phones, electronics, and telecom products directly or through third-party manufacturers.
The blueprint
Zetwerk is investing Rs 1000 crore in expanding its electronic manufacturing capacity for smartphones, televisions, hearing aids, wearables, Wi-Fi routers, PCBAs, and IT hardware products like laptops and servers.
He said that under the production-linked incentive (PLI) scheme, the majority of the investment will be allocated to setting up capacities for laptops, servers, and other IT hardware products.
The executive said the government's halt on imports in these categories would benefit companies like Zetwerk. “We will begin with laptops. The potential for exports for laptops is very high,” he said.
The company is exploring markets for feature phones and 4G and 5G smartphones in the US, the Middle East and Africa. Zetwerk is close to getting its first smartphone export orders from the US, he said.
Expansion plans
Zetwerk plans to expand its capacity from 16 assembly lines in one factory at Noida, Uttar Pradesh, to 60, including surface-mount technology lines and PCB assembly, across six manufacturing facilities.
It is building a high-capacity computer device facility in Bangalore that will focus on manufacturing motherboards, desktop PC power supplies, and other electronic components for major multinational corporations and original equipment manufacturers (OEMs).
The company also entered the television and display devices business by commissioning one of India's largest TV manufacturing facilities, with a production capacity of 2.4 million units annually, to cater to both domestic and international brands.
Zetwerk, which manufactures 2 million phones, feature as well as smartphones, a month for local brands, is planning to scale up to serve international brands.
He said the company’s combined capacity for mobile phones, hearing aids, and wearables will be 4 million units a month across its six factories.
Zetwerk will also consider expanding its products in the telecom equipment category, supplying printed circuit boards to enterprises participating in the telecom PLI scheme. It may supply equipment such as GPON, set-top boxes, routers, and mobile baseband units.
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