Electronics manufacturing services firm Optimus Electronics aims to produce 1.5 million laptop units annually and double the production capacity for wearables and wearables this year – which could reduce the cost of products in this category. The company is planning to invest Rs 150 crore to boost production […]
Electronics manufacturing services firm Optimus Electronics aims to produce 1.5 million laptop units annually and double the production capacity for wearables and wearables this year – which could reduce the cost of products in this category.
Optimus Electronics Ltd (OEL) Managing Director A Gururaj told PTI that the company plans to invest Rs 150 crore to increase production capacity and hire 2,000 people by 2022.
“We can make around 1 lakh to 1.5 lakh laptops in a year. Customers are saying I want more. We are in discussion with them (OEM). We are like about 1.5 lakh laptops a year (capacity wise). We will start somewhere at that level in the next two to three months.”
Without commenting on what exactly affects the prices of the products, Gururaj said that local products have contributed to the benefit of the end consumers.
“Same thing should happen with laptops too,” he said.
However, he added that the impact on prices depends on several factors, including the economy of the manufacturing sector, healthy supply chain, etc.
OEL is one of the Electronic Product Services (EMS) eligible for Product Related Incentive (PLI) Scheme.
He added that OEL is excited about the growth in the wearables and hearing aid business in the current calendar year.
“As of June 2021, the wearables market has grown by about 119 percent year-on-year. In the last one year, we have produced around 11 million units outside India and have seen strong shipments from domestic brands. Domestic brands in this segment, unlike mobile phones, are growing rapidly. Watches are fuel efficient. These are all IDC reports,” said Gururaj.
The Ministry of Electronics and IT has proposed to the Finance Ministry to increase the incentive of about Rs 22,000 crore in the form of PLI for wearables and incentives for IT hardware in the next financial year.
Gururaj said that OEL has started focusing on the wearables segment even without PLI.
The company already makes equipment for noise.
“As we build capacity for Shore, we will be working with more brands and OEMs to double or triple this business in the coming years. The wearables and wearables space is what domestic brands are doing very well, you know, and I think they have a huge market share,” said Gururaj.
He said the company currently has a capacity to manufacture 3 lakh wearable and audio devices, which it plans to increase to 7 lakh units per month by March.
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