Sahasra Electronics, a Delhi-based electronics goods manufacturer, is set to venture into laptop production with a substantial investment of up to Rs 250 crore over the next six years. Riding on the production-linked incentive (PLI) scheme for IT hardware, the company aims to begin with an initial capacity of 25,000 laptops a month, gradually scaling up to an impressive 100,000 laptops monthly.
As per the company’s submitted plan for government incentives, Sahasra envisions a turnover of Rs 2,800 crore from its laptop production division over the next six years. The company has already secured its first order for 10,000 laptops from French electronics brand Thomson Computing, marking a significant step towards reducing supply chain dependence on China.
Sahasra CEO Varun Manwani highlighted the government’s recent policy adjustments, introducing a license for importing laptops, as a strategic opportunity for new players to enter the domestic market swiftly with locally manufactured products. With the policy creating a more level playing field, Sahasra aims to carve out a niche in the market currently dominated by established laptop brands.
While industry estimates suggest an annual requirement of 13-14 million laptops in the domestic market, with approximately 80% being imported, Sahasra is gearing up to contribute to the growing demand driven by India’s digitization and the expansion of the services sector.
Increasing Local Value Addition: A Key Focus
Sahasra aims to address concerns about government incentive schemes by prioritizing local value addition in laptop manufacturing. Despite starting with the domestic assembly of laptop components sourced from China, the company envisions significant growth in local value addition, from 25% in the first year to around 45% by the sixth year of production.
The laptops produced by Sahasra for Thomson will span a spectrum of low-cost to premium, ranging from sub-Rs 15,000 per unit to over Rs 90,000 per unit. The company anticipates increased local value addition as it progresses, leveraging developments in battery plants, semiconductors, and potential manufacturing plants for accessories like LCD displays and motherboards.
With a focus on utilizing locally produced semiconductors, Sahasra aims to achieve one of the highest levels of domestic value addition in the coming years. The PLI scheme for IT hardware, encouraging manufacturers to prioritize domestic procurement of components, aligns with Sahasra’s strategy to achieve up to 45-50% local value addition.
As Sahasra Electronics embarks on this transformative journey, it positions itself as a significant player in India’s evolving laptop manufacturing landscape.
