Salcomp to invest Rs 18 billion in India operations; triple sales to $3 billion

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Salcomp to invest Rs 18 billion in India operations; triple sales to $3 billion

Salcomp to invest Rs 18 billion in India operations; triple sales to $3 billion

Industry News
Jul 03,24

It is planning to expand the capacities for its new product lines which will include component for handsets.

Salcomp to invest Rs 18 billion in India operations; triple sales to $3 billion

Salcomp Plc., the world’s largest producer of mobile phone chargers, and a key supplier to Apple Inc., is looking to invest up to Rs 18 billion in its India operations in the next two to three years. It is also set to introduce new products like electric vehicle chargers, solar microinverters, hydropower electronics equipment and components.

Sasikumar Gendham, MD, Salcomp, said Salcomp Manufacturing India Pvt. Ltd, will double its workforce to 25,000 to support its expansion plans and is aiming to triple its revenue to $3 billion by 2026. India is the largest manufacturing base of the Finland-headquartered firm.

“India is targeting $300 billion revenue from electronics by 2026, and we would aim to clock 1% of it, which means we are targeting to grow at least 50% per year, and in this diversification plays a part. We’re the largest phone charger makers so a natural extension is EV chargers,"said Gendham in an interview.

“We’re on the edge of our earlier investment commitment of Rs 18 billion and 10,000 jobs in Tamil Nadu. So, we will be putting in new investments... it could be in the similar range."

Gendham said the industry requires common standards for batteries and chargers so that manufacturers can scale production for the same product for multiple companies and boost domestic manufacturing.

“We’re in an early stage, and setting standards can rationalize the whole ecosystem. Right now, there are a lot of imports happening, but if there are standards, manufacturers will have to by default make in India," he said.

Salcomp produces around 100 million chargers a year at its seven factories across India, or a fifth of its global manufacturing capabilities.

It is planning to expand the capacities for its new product lines which will include component for handsets. “Chargers are 30% but the other areas where we’re getting into are increasing, so we’re becoming an original design manufacturer (ODM) and electronics manufacturing services provider, since we’re co-developing products with our customers," he said.

The Development of Enterprises and Services Hub (Desh) Bill, which will replace Special Economic Zones Act will open up the sector, he said.

(Source: The Mint)