VVDN Technologies is setting up a facility in the US to meet local production requirements, even as it looks to expand manufacturing at home under the Centre’s Electronics Components and Manufacturing Scheme (ECMS), co-founder and president Vivek Bansal has said.
The Manesar-based electronics manufacturer’s expansion comes amid Trump tariffs, which have upended global trade, and shifting of supply chain strategies among multinational firms.
“We are also setting up a small manufacturing shop in the US to take care of some real local manufacturing needs of North America,” Bansal said. “This will primarily focus on city defence and related products that must be made locally.”
The plant, along with an existing unit in the UAE, aims to bypass tariffs imposed by the Trump administration on Indian exports while helping VVDN serve key customers closer to their markets.
US exports account for $150 million of VVDN’s annual revenue.
While acknowledging “a bit of apprehension” among global partners regarding US trade policies, Bansal said he remains optimistic that ongoing talks between the two countries will result in “a more favourable framework for technology and manufacturing cooperation”.
IPO on horizon?
VVDN will also explore a public listing in the near future, once its annualised revenue crosses the $1 billion (around Rs 8,800 crore). According to data from Tofler, the company reported Rs 2,145 crore ($242 million) in net revenue for FY24.
A client note by Crisil indicated that VVDN had already recorded Rs 1,874 crore ($211 million) in revenue in the first six months of FY25 and was on track to reach Rs 3,800 crore ($428 million) by March 31, 2025. The company is yet to file its FY25 results.
VVDN has, so far, raised $65 million across three funding rounds, including a growth equity investment in 2024 by Applied Ventures, the VC arm of Applied Materials. Motilal Oswal Private Equity invested in earlier rounds.
VVDN is betting big on India’s expanding electronics and manufacturing ecosystem. Founded in 2007 as a design-focused company, it now derives around 50 percent of its revenue from exports to markets such as the U.S., Canada, Europe, Japan, and Korea.
“Our global business is growing well,” Bansal said. “Earlier, India was mainly a software destination. But now, the buzz around manufacturing in India helps us convince more North American and European customers to move production here.”
Diversification push
Beyond telecom and electronics, VVDN is diversifying into high-value sectors. “Today, our major contributors are data centres, telecom, cameras, and automotive,” Bansal said. “We’re adding new domains like railways, defence and aerospace, and expect these to grow significantly in the coming years.”
The company, already approved under the PLI schemes for telecom and IT hardware, has applied for incentives under the ECM 2.0 scheme and is preparing to make multiple $100 million investments in component manufacturing within India.
“We’ve already announced our PCB (printed circuit board) fabrication plans, and we’re also getting into display manufacturing, connectors, and capital goods,” Bansal said. “We’re very bullish about doing more backward integration.”
According to Bansal, the government’s incentive programmes have played a crucial role in enabling Indian companies to scale up capacity.
“The PLIs have been fantastic initiatives. They support companies in setting up infrastructure and attract large global customers to manufacture in India.”
After setting up its 6G Centre of Excellence, the company is developing intellectual property (IP) for the next generation telecom technology, including hardware, antenna design, and software stacks.
VVDN is continuously investing in developing local intellectual properties, adding that 60-70 percent of manufactured products are designed internally. "We are investing a lot...This is one of the ways we can convince customers to work with VVDN," he said.
With active projects in 5G, 6G, and O-RAN technologies, VVDN aims to blend design innovation with large-scale manufacturing, strengthening India’s position in the global electronics value chain, he said.
In April 2024, the company launched a new assembly line for enterprise-grade laptops for the Taiwanese brand Asus, marking its entry into a new product category.
VVDN competes with leading domestic contract manufacturers such as Dixon Technologies, Syrma SGS and Kaynes Technology.
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