VVDN Technologies, an Indian electronics manufacturer, is significantly increasing the domestic value addition in laptop production. The company aims to achieve over 50% of the laptop's cost contributing to revenue generated within India, a first for the country. Currently, they already contribute 40% of the cost through local manufacturing and in-house design.
This achievement follows the Indian government's approval of a $2.7 billion components incentive scheme. The scheme provides incentives to electronics firms that manufacture devices and components locally. The Indian government highlights the country's design talent as a significant competitive advantage. The electronics sector is experiencing robust growth, with employment exceeding 2.5 million and annual revenue exceeding $130 billion.
VVDN Technologies reported annual revenue exceeding $250 million in FY24 and is cash-flow positive. The company is not currently seeking further funding or a public listing. They have the capacity to produce 20,000 laptops monthly, with potential to increase to 100,000 units.
While progress is significant, the company acknowledges continued reliance on imports for some core components. Industry experts emphasize India's dependence on other countries for critical raw materials and components, hindering the growth of the electronics economy. The government aims to incentivize local design and manufacturing to reduce this reliance and make India a more significant player in the global supply chain.