· International category – An invitation to Apple and Samsung: The international mobile phone manufacturing companies approved under the Mobile Phones segment (invoice value of INR15k+) are: (i) Samsung, (ii) Foxconn Hon Hai, (iii) Rising Star, (iv) Wistron, and (v) Pegatron. Of these, three companies – Foxconn Hon Hai, Wistron, and Pegatron – are contract manufacturers for Apple iPhones. Notably, Apple (37%) and Samsung (22%) together account for nearly 60% of global sales revenue in Mobile Phones. The PLI Scheme is expected to result in a manifold increase in these companies’ manufacturing bases in the country.
· Aim to create five domestic champions: Under the Mobile Phones (domestic)n segment, Indian companies such as (i) Lava, (ii) Bhagwati (Micromax), (iii) Padget Electronics (subsidiary of Dixon Technologies), (iv) UTL Neolyncs (Karbonn), and (v) Optiemus Electronics are approved by MeitY. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in the mobile phone manufacturing space.
· Six companies selected toward component ecosystem: Six companies aren approved under the Specified Electronic Components segment, including: (i) AT&S, (ii) Ascent Circuits, (iii) Visicon, (iv) Walsin, (v) Sahasra, and (vi) Neolyncs.
· Over the next five years, the approved companies under the PLI Scheme aren expected to generate total production of more than INR10.5t. Of the total production, the approved companies under Mobile Phones segment (invoice value of INR15k+) have proposed the production of over INR9.0t. The approved companies under the Mobile Phone (domestic) segment have proposed the production of ~INR1.25t; those under the Specified Electronic Components segment have proposed the production of over INR150b.
· The companies approved under the scheme are expected to significantlyn promote exports. Of the total production of INR10.5t over the next five years, around 60% would be contributed by export orders (worth INR6.5t).
· The companies approved under the scheme would bring additional investmentn of INR110b in Electronics Manufacturing.
· The companies approved under the scheme would generate more than 200kn direct employment opportunities over the next five years. They would also create additional indirect employment nearly three times the direct employment.
· Domestic value addition is expected to grow from the current 15–20% to 35–n 40% for mobile phones and 45–50% for electronic components.
