US-based electronics manufacturer Flex Ltd is keen to shift its major manufacturing base to India from China, and wants to set up export-oriented facilities with a target turnover of $1 billion in the next one year.
Sources close to the development told BusinessLine that the company’s President Richard Hopkins, along with some senior officers, recently met the Minister of Electronics and Information Technology (MeitY), Ravi Shankar Prasad, to discuss the same.
“The company is interested in a big way in component manufacturing in India, and has committed to invest around $50 million in India in the near future.
“The company is going to set up export-oriented manufacturing facilities in India, and is targeting a turnover of $1 billion in the next one year. And to start with, it will be manufacturing only for the American companies based out of India,” a senior government official said on condition of anonymity.
The official said Hopkins and his officers had a 30-minute meeting with the Minister and discussed feasibility of local manufacturing and “a significant export roadmap of specific electronic components from India”.
“The purpose of this meeting was to discuss feasibility of local manufacturing in India. Flex is one of the US companies looking to diversify its manufacturing from China towards other geographies, and with specific support from the Indian government, there is a real possibility of moving significant portion to India,” said another senior official.
Digital India drive
Another source said that Hopkins and his officials also met the Commerce Minister to discuss similar issues. The company, which already has a presence in India with over 25,000 employees, wants to expand further to be a key part in the Digital India programme.
Through this initiative, Flex will kick-start the growth of the electronic component ecosystem in India, which, it believes, would eventually lead to India being one of the global leaders, the sources said.
Flex has been present in India since 2001, and has 11 facilities spread across India, including Chennai, Bengaluru, Pune, Hyderabad, Gurugram and Vishakhapatnam. The company has four facilities in Tamil Nadu itself.
The company, in July this year, inaugurated a new facility at Walajabad in Kancheepuram district of Tamil Nadu, which is dedicated for smartphone accessories.
The company manufacturers various parts for mobile phones, automotive, computers, medical and solar components.
It is also present in the drugs and pharma industry.―The Hindu Business Line