Dixon Tech to As­sem­ble Bat­ter­ies, Charg­ers Lo­cally

The Economic Times - - Companies: Pursuit Of Profit - Gul­veen.Au­lakh@times­group.com

New Delhi: Dixon Tech­nolo­gies, an elec­tron­ics man­u­fac­turer based in Noida, will be­gin as­sem­bling bat­ter­ies and charg­ers of mo­bile phones lo­cally fol­low­ing a govern­ment move to make cheaper the im­ports of parts re­quired for th­ese pe­riph­eral prod­ucts. Su­nil Vachani, chair­man and man­ag­ing di­rec­tor of Dixon Tech­nolo­gies, said the com­pany will be­gin as­sem­bling th­ese prod­ucts for mo­bile phones at its ex­ist­ing fac­tory in Noida by July. “The govern­ment has taken a step in the right di­rec­tion and the move falls right in our al­ley,” Vachani said. He added that the com­pany will look at a ca­pac­ity of 1mil­lion a month, which typ­i­cally re­quires an in­vest­ment of .₹ 6-7 crore. In­clud­ing charg­ers, the in­vest­ment will rise to .₹ 20 crore.

The com­pany, which has three plants in Noida and one in Ut­tarak­hand, will use its Noida fa­cil­ity to be­gin as­sem­bling bat­ter­ies and charg­ers. The govern­ment has re­duced du­ties on im­ports of com­po­nents and parts re­quired for mak­ing bat­ter­ies, charg­ers and wired head­sets for mo­bile phones, bring­ing them down to nearly zero, in an at­tempt to push lo­cal man­u­fac­tur­ing of th­ese prod­ucts.

The duty dif­fer­en­tial be­tween im­ports of ready­made bat­ter­ies, charg­ers, speak­ers and head­sets and those made lo­cally was widened to 27 per­cent­age points from nil pre­vi­ously. The duty dif­fer­en­tial for com­po­nents fol­lows the govern­ment’s move to make lo­cal hand­set man­u­fac­tur­ing vi­able by re­duc­ing du­ties on mo­bile phone parts. On the other hand, im­port­ing fully made phones into In­dia was also made ex­pen­sive in March 2015.

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