We have recently started manufacturing of mobile phones through our joint venture, PEPL, commercial production of which started in January 2016.
We manufacture feature phones and smart phones (2G, 3G, 4G/LTE, VoLTE and CDMA).
Mobile phone manufacturing requires controlled environment and testing mobile devices requires special equipment and methodology. The key raw materials and components used in manufacture of mobile phones include touch panel, LCD, PCBAs, FPCs and front and back housing. We currently do not have designing capabilities in the mobile phones vertical.
As per the Frost & Sullivan Report, demand for smart phones is rising at the rate of 27.1% and 28.2% respectively between FY 16 to FY 21. Government is taking keen interest to push for increasing domestic value addition by making imports costlier. This has pushed OEMs to make investments in local manufacturing capabilities, thus accelerating domestic production seen in recent years.
Our strategy in the mobile phones vertical is deepening of relationships with existing key customers, migration towards PCB level assembly as a first step and backward integration for mobile phone chargers.