Local TV maker Videotex International has announced plans to invest Rs. 100 crores for setting up a new TV manufacturing plant in Greater Noida in the National Capital Region (NCR). The company said the new factory will increase its manufacturing capacity to 3.2 million televisions. Its current factories have a capacity of 1.4 million units.
Additionally, the company also said that it will hire new employees to accommodate the increase in manufacturing capacity. This includes back office staff, as well as those on the manufacturing floor and more.
Currently, Videotex manufactures televisions for companies like Realme, Hisense, Toshiba, Lloyd, Hyundai and more than 15 other brands in the country. It is also the exclusive licensee for manufacturing TVs running on LG’s webOS operating system in South Korea.
“Electronics contract manufacturing in India is expected to increase more than sixfold by 2025. Rising duties on imports of finished products have given a strong boost to local manufacturing and assembly in India,” said Arjun Bajaaj, director of Videotex. This decision led to an encouraging response to domestic production. Currently, many brands do not have the manufacturing facility in India, a leverage effect is prompting several TV manufacturers to seek trusted and reputable local partners with solid experience and expertise to meet their needs” he added.
Companies like Videotex are looking to capitalize on the growing demand for TVs in India since the pandemic. According to a March 2022 report by market research firm Counterpoint Research, Indian TV shipments increased 48% year-on-year (YoY) in the quarter ending December 2021, recording 24% year-on-year growth. annual report for the calendar year 2021. He noted that the smart TV market in the country reached its highest shipments in 2021, due to pent-up demand due to the pandemic.
Videotex isn’t the only TV maker investing more in manufacturing, either. Competitor Super Plastronics Pvt. ltd. (SPPL) had announced a Rs. 300 crore investment in India last year, which the company said would be phased over the next three years.
Like Videotex, SPPL also aims to double its capacity with the investment. The company also said it will build its capabilities in Internet of Things (IoT) technologies to meet new customer demands.
Another contract manufacturer, Radiant Appliances and Electronics, also opened a new LED TV manufacturing plant in Hyderabad last week, boosting production capacity to 4.5 million units a year from 2.1 million.
SPPL, Radiant and Videotex are among the largest TV manufacturing companies in India, alongside Dixon Technologies, which has a larger manufacturing portfolio including smartphones, laptops and more. The company is also a beneficiary of the government’s Production Linked Incentive (PLI) program for mobile phones, announced in March 2020.
PLI schemes worth Rs. 51,355 crore were announced in March 2020. They applied to three sectors including manufacturing of mobile phones and specified electronic components, like pharmaceutical intermediates and active pharmaceutical ingredients; and medical devices.