There has not been enough done to encourage electronics component manufacturing in India, according to Ashok Dhawan, Managing Director and Vice President, Flextronics.
The electronics manufacturing services firm, which helps customers such as Nokia and Microsoft design, build, ship and service their products through a network of facilities, has been running its plant near here at an utilisation level of only 35 per cent.
This is compared to the 100 per cent utilisation at the company’s China plant. In addition to this, its employee addition has not been as high as was initially envisaged when the company’s plant first went on stream. “It is true that this ecosystem is not here. Revenue from our Sriperumbudur facility is only around $100 million although we hope that this will be three to four times in the coming years,” Mr. Dhawan, who was here to inaugurate the company’s new Global Business Services centre.
According to Mr. Dhawan, there has been some ‘positive noise in recent times from the government and that only execution is lacking’.
On the other hand, Flextronics’ back-end shared services in India, is booming. The company expects to double its headcount in this regard over the next three-to-five years.