Chinese smartphone behemoth Infinix is considering the prospect of localizing its laptop production in India. As a key player in the global smartphone market and a recent entrant into the laptop arena, Infinix’s exploration of local manufacturing aligns with the company’s commitment to adapting to policy changes and strengthening its foothold in the Indian market.
Local Production Evaluation
Anish Kapoor, the CEO of Infinix India, revealed that the company is currently in discussions with original design manufacturers to assess the feasibility of producing laptops locally. Kapoor emphasized that while the challenges posed by the existing ecosystem are significant, maintaining the high quality of their products remains a non-negotiable priority. The success of this venture hinges on the development of a robust local ecosystem capable of meeting stringent quality standards.
Policy Changes and Industry Response
Infinix aims to kickstart local laptop production within a year, strategically aligning with upcoming policy changes that will impact laptop imports in the country. The Indian government recently implemented an import management system, allowing unrestricted imports of IT hardware products, including laptops, for the first year. However, starting from November 1, 2024, imports will face gradual restrictions annually. This move has prompted several global brands, including Infinix, to reevaluate their manufacturing strategies in India.
Industry Dynamics and Collaborations
Infinix joins the league of industry giants such as HP and Dell, who are either expanding their manufacturing capacities or entering strategic partnerships with electronic manufacturing service (EMS) providers for local production. Intel’s recent collaboration with prominent Indian manufacturers underscores the industry’s collective commitment to adapting to evolving regulations and fostering local manufacturing capabilities.
Potential Benefits and Incentives
Infinix stands to benefit from India’s Production-Linked Incentive (PLI) scheme for IT hardware products, covering laptops, tablets, all-in-one personal computers, servers, and ultra-small form factor devices. The scheme, boasting an outlay of ₹17,000 crore, incentivizes companies collaborating with approved EMS players. Among the 32 approved applicants, Dixon Technologies’ subsidiary Padget Electronics and Optiemus Electronics are positioned to harness the advantages of the PLI scheme.
The government anticipates a substantial infusion of ₹2,430 crore in investments, leading to the creation of direct employment opportunities for 75,000 individuals. Furthermore, the incremental production is expected to contribute ₹3.35 trillion to the economy. This underlines the government’s commitment to fostering local manufacturing, job creation, and economic growth through initiatives such as the PLI scheme.
