Dixon Tech to Assemble Batteries, Chargers Locally
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.