Micromax to Announce Foray into Display Module Manufacturing This Quarter

Contract manufacturer Micromax has started working on display module manufacturing for smartphones and will make an official announcement in the April-June quarter of this financial year, said the company’s co-founder Rahul Sharma. The company plans to take part in the PLI scheme for electronics components manufacturing.

The development comes days after the Centre approved Rs 23,000 crore PLI scheme for components manufacturing in the country.

Micromax is already part of the government’s three PLI schemes to boost electronics manufacturing in India, making the company one of the leading beneficiaries.

“Maybe in the next quarter (April-June), you can expect display (module) announcement from us. Subsequently, you will hear in this year itself on the precision molding mechanics and the camera module,” Sharma told Outlook Business.

The government is targeting to achieve revenue of $500 billion from electronics manufacturing by 2030.  Sharma said that this offers an opportunity of about $300 billion in component manufacturing as they make almost 60% of a smartphone’s cost.

Micromax is planning to invest about Rs 1,000 crore in display and camera module manufacturing. The company is looking to partner with leading global players in the electronic component manufacturing sector, which is currently dominated by Chinese firms.

According to reports, other contract manufacturers such as Dixon, Zetwerk and Optiemus are also planning to take part in the scheme as the government seeks to make India a key player in the global supply chain and reduce import dependence.

Through the scheme, it aims to attract investment of Rs 59,350 crore resulting in production of Rs 4,56,500 crore worth of products. The scheme may create an additional direct employment of 91,600 and many indirect jobs as well. It is expected that the government may come up with the guidelines of the scheme within two weeks.

In the last few years, Indian electronics goods manufacturing sector has posted high growth. The domestic production of electronic goods has increased from Rs 1.90 lakh crore in FY15 to Rs 9.52 lakh crore in FY24 at a CAGR of more than 17%. The exports of electronic goods have also increased from Rs 0.38 lakh crore in FY15 to Rs 2.41 lakh crore in FY24 at a CAGR of more than 20%.