Apple’s second-largest contract manufacturing company, Pegatron, will invest $ 150 million (about Rs 1100 crore) in India. The board of Taiwanese company Pegatron approved the investment. Through these investments, a manufacturing plant will be set up in India. This has been said in the Taiwanese media citing a top executive.
Production can start in the second half of next year
Pegatron CEO Lao Shai-Zhang said at the Investors Conference last week that the plant to be built in India could start production in the second half of next year or early 2022. Zhang said that the company plans to invest more in India in the next two years. Pegatron registered for its Indian subsidiary this July. The company says that due to the epidemic, Pegatron’s staff is unable to travel to India. Due to this, the plantation is delayed.
Also applied for PLI scheme
The Central Government has included Production Incentive Scheme (PLI) on 1 April to promote electronics manufacturing. Under this, an incentive of Rs 50,000 crore will be given by the government in the next five years. Two more Apple suppliers, Foxconn and Wistron, along with Pegatron, have also applied for the scheme. Of these three companies, Pegatron does not have a plant in India. The PLI scheme will come into effect from 1 April 2021.
Pegatron started work in India
In fact, Pegatron has started business operations in India since September. Pegatron has appointed auditors. Also issued an initial subscription of 1 crore equity shares. However, Apple has put Pegatron into probation due to students working in China. The CEO says that the company will not do such a thing again. Indian officials say that this action will not affect Pegatron’s India plan.
Apple is investing heavily in India
Apple is investing heavily for local production in India. The investment is being made as part of a plan to exit China due to a trade war with the US. Last week, central electronics and IT minister Ravi Shankar Prasad had said that during the Corona era, nine Apple companies have shifted operations from China to India.
Apple produced 1.2 million units by September 2020
As of September 2020, Apple has produced 1.2 million units in India, according to data from Counterpoint Research. This is close to last year’s 1.4 million productions. This year Apple has produced this despite a shutdown in the factory for 45 days. According to Counterpoint Research, 42% of the total units assembled by Apple in India are sold locally. The remaining units are exported.