The new facility, coupled with VVDN’s internal design capabilities, will allow the song to make more than 50% of the cost of making a laptop for the first time, which will help generate revenue in India.
In an interview MintPuneet Agarwal, CEO of VVDN Technologies, said the company has seen 40% of the cost of manufacturing laptops to contribute to domestic revenue. “All of these efforts contribute to increasing 10-40% of the value of the family. We have introduced laptops from the assembly line, with 40% of the revenue accounting for the increase in the value of the family,” he said.
“We are also a manufacturer of design leaders and all of our product reference designs are in-house. If design aspects are taken into account, the home value of our telecom equipment and the family value of our laptops is much higher than 50%.”
Increased domestic value refers to the net income generated by a country’s internal operations, and does not rely on imports. This includes manufacturing components, purchasing raw materials, manufacturing equipment for the manufacturing process, and designing equipment being manufactured.
VVDN’s announcement on Friday is the first announcement after the Centre approved a $2.7 billion component incentive program on March 28, with the Alliance Government offering up to 10% turnover connectivity incentives in India and up to 25% capital expenditure-based incentives to electronics companies that build equipment, components and specialize in manufacturing equipment in India.
Alliance IT Minister Ashwini Vaishnaw, who launched the assembly line for VVDN on Friday, said the move could “give us a great advantage compared to many other countries that don’t have that much design talent.”
Reap dividends
In this note, VVDN will be the applicant for the Center Component Incentive Program to maximize cash flow and expand its operating margins.
“Today, electronics manufacturing companies have hired about 2.5 million people to handle some of the most complex devices. The industry has grown fivefold in the past 10 years. Today, the industry has exceeded $130 billion in the past 10 years. Electronics Exports has grown sixfold in the past 10 years to nearly $40 billion,” Vaishnaw said.
Vaishnaw added that VVDN has over 5,000 design engineers in the country – “has made a significant leap from traditional systems and designed products for AI in AI itself.”
This move is helping companies such as VVDN Technology have already reaped dividends. Agarwal told Mint The company “already has cash flow that is positive and has strong growth opportunities.”
The company’s financial documents to the company’s registrar (ROC) are MintIt said it had annual revenues of more than $250 million in fiscal 24. Agarwal does not have a revenue forecast for the previous fiscal year, i.e. FY25. However, executives said VVDN Technologies does not buy private equity or venture capital rounds in the market, or public lists listed for the current fiscal year based on its expected expansion of the order book and capabilities.
“We may consider listing plans for a few years of public listing online, but at least for now, we don’t have any fundraising plans yet,” Agarwal said.
Earlier this month, VVDN Technologies launched a locally manufactured laptop from Taiwan’s electronics conglomerate brand Asus. The company’s current assembly line capacity produces 20,000 laptops per month from its Manesar factory, and according to demand, Agarwal says it can increase to 100,000 units per month.
Reliance on other countries
In addition to equipment, production facilities focus on components such as printed circuit boards (PCBs), molds (used to manufacture external housings on laptops and other devices, as well as tools), or mechanical equipment used to manufacture these components.
In each case, most of the raw materials and core components already come from India itself, Agarwal said. He added: “In the manufacturing area of equipment molds, most of the operations are sourced through supply chain entities in India itself. In electronic devices such as network switches and routers, core electronic components are still imported in various countries – in the long run, we are working to reduce them.”
Industry experts repeatedly stressed India’s dependence on countries such as China’s core electronics and network components, as well as key raw materials, such as processed metals used in network hardware and battery batteries, are key obstacles to India’s electronics economy. The center sets goals to try to make electronics a $500 billion annual revenue generator by 2030.
April 10, Mint India’s electronic exports can comfortably exceed $50 billion in the next five years, the report said. Crucially, industry analysts say India’s main goal is to increase the increased domestic value of electronics and related equipment and components, which is estimated to be 10-20% at present.
“The Centre is looking to incentivize ways for private firms to expand domestic value addition significantly by focusing on local design capability, since India has a lot of design engineering talent. Through essentials, India can draw global supply chain entities to the country, and the current geopolitics can push India to become a more important part of a distributed supply chain away from China,” said Ashok Chandak, president of the industry body, India Electronics and Semiconductor Association (Iesa).
Mint On April 16, the center also hopes to launch an incentive program based on a wide range of design and design as part of its overhaul of its semiconductor mission in India. For VVDN technology, this move will be further good, which has designed equipment and manufactured components locally to increase the added value to India’s electronic supply chain.
