That Japan's Sony is making its Bravia range of televisions under a contract with Competition Team Technology, a subsidiary of Taiwan's Foxconn at Sriperumbudur is a huge push for Narendra Modi's Make in India initiative.
That Japan’s Sony is making its Bravia range of televisions under a contract with Competition Team Technology, a subsidiary of Taiwan’s Foxconn at Sriperumbudur is a huge push for Narendra Modi’s Make in India initiative. The Bravia range accounted for 40% of Sony’s sales of Rs 10,600 crore during 2014 in India. Once these TVs are made in India, they could be much cheaper than now, adding to the demand. This is the second coming for Sony in India, that lost out to Korea’s Samsung in the mid-90s.
While the announcement is good news, the problem is that India does not have a facility to make microchips or LCD panels. Since these have to be imported, it is not truly a made in India TV, rather an assembled in India TV. As China’s Xiaomi, Taiwan’s Foxconn, US-based InFocus and India’s Karbonn and Micromax look to manufacture electronic devices in India, it’s time the government rolls out the red carpet to companies willing to make memory chips and LCD panels in the country. Only once these plants are up in place, will we have truly Made in India devices.
Setting up these plants are quite important since India’s demand for electronic goods is expected to be in the region of $ 400 billion in 2020. As things stand, $ 300 billion of that will have to be imported. If steps are not taken immediately, this could well be the biggest draw on the country’s foreign exchange reserves by then, overtaking crude oil imports. Considering that this is something that can be addressed since we have such a huge doemstic market, it’s time the chip companies are wooed. Foxconn’s entry could lead to a string of ecosystem partners looking to set up plants in the country.