Latest news with #AtulLall
Time of India
3 days ago
- Business
- Time of India
Not just Apple iPhones! Android smartphone makers like Samsung, Motorola step up exports from India to US; move due to Trump's tariff policies
It seems that Donald Trump administration's tariff policies are promoting not just Apple but other global smartphone makers as well to export from India to the US. Android phone exports from India to the US are experiencing substantial growth, alongside Apple's iPhones, influenced by both US tariff regulations and India's initiatives to boost exports. Tired of too many ads? go ad free now In the Indian smartphone manufacturing sector, whilst Samsung and Motorola have enhanced their export operations to the United States and other international markets, Apple maintains its position as the dominant smartphone exporter, particularly in shipments to the US market from India. Surge in Android smartphone exports from India to US Data from market research firm Canalys quoted in an ET report shows that Motorola, owned by Lenovo, exported 1.6 million Android smartphones from India during the initial five months of 2025, with the US receiving 99% of these shipments. This marks an increase from 1 million units in 2024. Industry experts note that Motorola, which partners with Indian manufacturer Dixon Technologies, previously relied predominantly on China for US market supply. China now faces a 55% US tariff since April, whilst India incurs 26%. Although smartphones are temporarily exempt from these reciprocal tariffs, the US policy outlook remains uncertain. According to Canalys data in the financial daily's report, Samsung, another significant exporter of smartphones from India to the US, delivered 945,000 units between January and May, up from 645,000 in the previous 12 months. The US imposes a 46% tariff on Vietnam, Samsung's primary export base for American markets. These tariffs are currently suspended for 90 days whilst Vietnam engages in trade negotiations. Dixon Technologies' Managing Director Atul Lall announced during a recent earnings call that they are boosting their production capacity by 50% above existing levels for Motorola, their key client. This expansion primarily aims to fulfil increased export demands to North America, particularly the United States, considering the current geopolitical landscape. Smartphone exports from India India's PLI Push Bears Fruit Driven by the government's PLI scheme aimed at establishing India as a global manufacturing hub, smartphone manufacturers are increasing their exports to African nations and the UAE. Companies like Dixon, Samsung, and Apple's partners Foxconn and Tata Electronics benefit from these incentives. Also Read | Data from Canalys shows that India's smartphone exports reached 35 million units during January-May, with Apple contributing 20.5 million units. The United States received 80% of Apple's exported devices. In 2024, total smartphone exports amounted to 60 million units, with Apple responsible for 50% of the volume. Other significant exporters included Samsung and Motorola. Industry analysts note that manufacturers including Samsung, Motorola, Transsion, and HMD Global (Nokia's manufacturer) are expanding their export operations from India. Tired of too many ads? go ad free now The PLI scheme has enhanced their global cost competitiveness, enabling them to export to markets with sufficient capacity. According to Canalys, Samsung's production, both in-house and through Dixon, is likely to achieve or surpass its 2024 export figures, having reached nearly half its target by May 2025. The company's exports totalled 25.3 million smartphones in 2024, with 11.4 million units already exported by May 2025. Also Read | Samsung maintains its export leadership among Android manufacturers, though its growth has plateaued due to shifting market destinations influenced by tariff uncertainties, according to Canalys analyst Sanyam Chaurasia. "Motorola is emerging as a surprise mover, nearly doubling its US-bound exports." The Transsion group's brands - Infinix, Tecno and iTel - have increased their export activities. Dixon secured a controlling interest in Transsion's manufacturing operations in May 2023. Dixon's Lall indicated strong export commitments to African markets, where Transsion commands over 80% market share. The company is exploring possibilities to export Google Pixel phones manufactured at their Indian facilities. Vivo, the leading smartphone brand in India's market and of Chinese origin, has begun modest export operations from India. The company shipped approximately 350,000 devices in 2024, with 250,000 units already exported until May this year, primarily to Thailand and Malaysia. Following its strategic manufacturing collaboration with Dixon and relocation to larger production facilities, Vivo is expected to enhance its export volumes starting this year. Also Read |
Time of India
04-06-2025
- Business
- Time of India
Tecno India says building components ecosystem with Dixon, to expand R&D focus
NEW DELHI: Transsion Group 's Tecno said domestic manufacturing of electronic components will support innovation in the country and contribute to the brand's long-term success in India. 'The ( electronic components manufacturing ) scheme supports local innovation, which is critical to our long-term success in India. We plan to continue to expand our local research & development and production capabilities to tailor our products to the needs of Indian consumers,' Arijeet Talapatra, chief executive officer (CEO), Tecno India , told ETTelecom. He said that Tecno and homegrown contract electronics manufacturer, Dixon Technologies , are jointly working to build a domestic electronics component ecosystem in India, supported by the ECMS 2.0 scheme. Atul Lall, MD of Dixon, said during the company's most recent earnings call that Transsion and Dixon have a joint venture (JV) in the electronic components domain to deepen manufacturing initiatives domestically. The Central government, earlier this year, notified the electronics components manufacturing scheme (ECMS) with an outlay of over ₹23,000-crore, which aims to drive the local manufacturing of sub-assemblies, bare components, and selected bare components such as display and camera sub-assemblies, passive components, multi-layered printed circuit boards (PCBs), Li-ion cells, and others. Ashwini Vaishnaw, union minister for electronics & IT, told news agency PTI in a recent interview that the government has received 70 applications for this scheme, with a majority of applicants from the small and medium enterprises sector. Talapatra further said that Tecno is actively pursuing to develop localised artificial intelligence (AI) capabilities and collaborating to improve the design of its smartphones to differentiate against rivals. It has established a new R&D centre in Noida with up to 60 engineers, which will drive the development of new AI features and regional product design for India, Bangladesh, and Nepal. According to the executive, the smartphone maker expects to grow at 200% year-on-year in the ₹15,000 to ₹20,000 5G smartphone segment , led by the rural markets, as demand in the urban regions starts maturing. 'We are strategically intensifying our focus on the ₹15,000 to ₹20,000 smartphone segment, which is currently the fastest-growing category in India, to cater to aspirational consumers seeking premium features at accessible prices,' the chief executive said. 'The demand for affordable yet feature-rich 5G phones is also growing rapidly in tier-2 and tier-3 cities,' he added. Transssion operates three brands in India – iTel, for budget-grade feature phones and smartphones; Tecno, for mid-range devices; and Infinix, for the premium, or flagship segment. Tecno India, according to the top executive, is focusing on a balanced growth strategy. 'We are emphasising profitability and volume at the same time. Backed by a strong global supply chain, we are aiming at further cost efficiency, and we will launch smartphones across all price points, including a ₹80,000 Tecno device,' he said.
Time of India
04-06-2025
- Business
- Time of India
Chinese mobile companies making more in India to dim regulatory glare
New Delhi: Chinese smartphone brands are increasingly outsourcing production to Indian contract manufacturers, benefitting the likes of Dixon Technologies and Bhagwati Products (Micromax), following what industry executives see as an unofficial nudge from the having excess capacities in their own manufacturing facilities in India, Chinese smartphone brands are outsourcing a large part of production to companies that are participants in the government's production-linked incentive scheme, industry executives and market trackers are not just outsourcing volumes, but also shifting the risk of government interventions and scrutiny, they said. They are on course to become more asset-light in India, where they face a tough regulatory environment. Offloading manufacturing — which incurs huge capital and operating expenses and has additional compliance issues — helps in cutting costs at a time when they are facing a liquidity crisis and stressed balance sheets, executives aware of the development told ET. According to Counterpoint Research, Oppo's shipments from its Noida factory fell 34% on-year in 2024 due to the increasing contribution of outsourced manufacturing by Dixon Technologies and Bhagwati Products. At a recent earnings call, Dixon Technologies chief executive Atul Lall projected the sales volume in India's smartphone market to be around 150 million a year. 'Out of that 150-odd million, Android space is around 135-140 million. Various brands are manufacturing in-house. And the outsourcing opportunity is around 90 million. And including our new tie up of Vivo, we are targeting for around 60-65 million by next year,' he said. Dixon made 28.3 million smartphones in fiscal 2025. Its projection for the ongoing fiscal year is 43-44 million. Lall said Dixon will be manufacturing 7-8 million smartphones for Realme (an Oppo subsidiary), which will be expanded in the next few years. It will also be supplying around 15-16 million smartphones to Vivo in the January-March quarter of 2026, by when it expects to get government approvals for its joint venture with the Chinese company. Brands such as Transsion and Vivo have also signed strategic partnerships with Dixon to form joint ventures where the volumes and revenues are split between the two partners. 'For Chinese companies, there seems to be an informal diktat from the government of India encouraging them to have some part of their volumes manufactured by Indian players. This is happening even though these companies have significant unutilised in-house manufacturing capacity,' an industry executive who did not wish to be named told ET. Samsung, Oppo and Vivo each have around 60 million units of capacity in India, while their annual sales are around 20-25 million, market trackers said. Emailed queries to Oppo and Bhagwati didn't elicit any response till press time Tuesday. 'Given the low margins in assembly, to have a positive unit economics you need a large scale, which is there with EMS (electronics manufacturing services) players like us. You can only achieve so much scale with making for your own brand. The trend of in-house manufacturing moving towards outsourcing, it's primarily to deleverage their balance sheets,' Lall told ET. Another industry executive told ET that Chinese brands are choosing to make only their high-end and flagship models in-house, outsourcing the entry-level models to Indian contract manufacturers. 'The budget segment of the smartphone market in India has not been growing for the past three-four years. In fact, it has been declining. Making these budget phones in-house is becoming less economical for the brands themselves,' the executive said. Recently signed partnerships with Chinese ODMs (original design manufacturers) by Indian contract manufacturers are also facilitating increasing outsourcing to them. Dixon has tied up with Longcheer, the largest Chinese ODM, and is making smartphones for Realme. Meanwhile, Bhagwati has formed a strategic joint venture with Huaqin, the second-largest ODM from China, and is churning volumes for Oppo and Vivo. 'With these ODM partnerships in place, Dixon and Bhagwati are in a stronger position to attract more outsourced manufacturing from Chinese brands who are far more comfortable working with fellow Chinese manufacturers than Indian brands,' one of the executives said. The executive added that Indian players have supervisors from the Chinese ODMs in place to monitor the shift in production from their in-house facilities. Indian contract manufacturers, who are beneficiaries of the PLI scheme, are also offering competitive pricing to the Chinese companies. 'A large portion of the PLI incentives, around 80% of it, are passed down to the customers, with the EMS companies keeping only a small part of it, helping customers achieve cost parity with manufacturing in places like China,' one of the executives said.
Time of India
03-06-2025
- Business
- Time of India
Chinese mobile companies making more in India to dim regulatory glare
Chinese smartphone companies are now outsourcing production to Indian firms like Dixon Technologies. This follows a possible push from the Indian government. Brands are shifting manufacturing risks and aiming for cost reduction. Oppo's factory shipments have decreased due to outsourcing. Dixon anticipates significant smartphone production growth. Joint ventures and strategic partnerships are also emerging in the sector. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Chinese smartphone brands are increasingly outsourcing production to Indian contract manufacturers , benefiting the likes of Dixon Technologies and Bhagwati Products (Micromax), following what industry executives see as an unofficial nudge from having excess capacities in their own manufacturing facilities in India, Chinese smartphone brands are outsourcing a large part of production to companies that are participants in the government's production-linked incentive scheme , industry executives and market trackers are not just outsourcing volumes, but also shifting the risk of government interventions and scrutiny, they are on course to become more asset-light in India, where they face a tough regulatory environment. Offloading manufacturing - which incurs huge capital and operating expenses and has additional compliance issues - helps in cutting costs at a time when they are facing a liquidity crisis and stressed balance sheets, executives aware of the development told to Counterpoint Research, Oppo's shipments from its Noida factory fell 34% on-year in 2024 due to the increasing contribution of outsourced manufacturing by Dixon Technologies and Bhagwati a recent earnings call, Dixon Technologies chief executive Atul Lall projected the sales volume in India's smartphone market to be around 150 million a year. "Out of that 150-odd million, Android space is around 135-140 million. Various brands are manufacturing in-house. And the outsourcing opportunity is around 90 million. And including our new tie up of Vivo, we are targeting for around 60-65 million by next year," he made 28.3 million smartphones in fiscal 2025. Its projection for the this fiscal year is 43-44 said Dixon will be manufacturing 7-8 million smartphones for Realme (an Oppo subsidiary), which will be expanded in the next few years. It will also be supplying around 15-16 million smartphones to Vivo in January-March quarter of 2026, by when it expects to get government approvals for its joint venture with the Chinese such as Transsion and Vivo have also signed strategic partnerships with Dixon to form joint ventures where the volumes and revenues are split between the two partners."For Chinese companies, there seems to be an informal diktat from the government of India encouraging them to have some part of their volumes manufactured by Indian players. This is happening even though these companies have significant unutilised in-house manufacturing capacity," an industry executive who did not wish to be named told ET. Samsung, Oppo and Vivo each have around 60 million units of capacity in India, while their annual sales are around 20-25 million, market trackers queries to Oppo and Bhagwati didn't elicit any response till press time Tuesday."Given the low margins in assembly, to have a positive unit economics you need a large scale, which is there with EMS (electronics manufacturing services) players like us. You can only achieve so much scale with making for your own brand. The trend of in-house manufacturing moving towards outsourcing, it's primarily to deleverage their balance sheets," Lall told industry executive told ET that Chinese brands are choosing to make only their high-end and flagship models in-house, outsourcing the entry-level models to Indian contract manufacturers.
Time of India
26-05-2025
- Business
- Time of India
India gains as US tariffs rise: Local firms see export boom
Chief executives of leading homegrown companies including Dixon Technologies , Tata Consumer Products , Blue Star , Havells and Arvind , have told analysts that Indian businesses are at a competitive position in the US tariff scenario and most of them are now flooded with queries for higher business from their US partners. The chief executives said the India-US bilateral trade agreement (BTA) currently being discussed will provide an impetus to business. Dixon managing director Atul Lall told an earnings call last week that the company was expanding capacity for its anchor customer by 50% to meet its increased order book, a large part of it will be for exports to North America in the light of the evolving geopolitical scenario. He said production volume for a large US brand, through its partner Compal, will increase "with potential opportunities for exports." While Lall didn't specify any of the brands, analysts said its anchor customer is Motorola, which exports handsets to the US and the US-brand is Google's Pixel. ET had also reported last month that Google wants to export handsets from India. While US president Donald Trump has asked mobile phone companies like Apple and Samsung to produce locally in the US instead of sourcing from India and other places or face 25% tariff, experts have opined that despite the additional tariff, it will be cheaper for companies to produce in India and export. Leading apparel manufacturer Arvind vice chairman Punit Lalbhai said in the short-term some of its "strategic customers" have seen their cost structures go up, which the company has also absorbed a bit and could lead to a "little bit of margin pressure" in the first and second quarters. He, however, said the company was seeing a jump in volume orders from many of its US customers. Lalbhai said margins will soon normalise and the benefits will flow in the second half of the fiscal year with a robust demand scenario. "This year we should add significant garment volume growth over last year in the textile space. Many of our capacities that we've been investing in are now coming on margin headwinds, but very optimistic growth and demand outlook," he said. The optimism from top CEOs comes at a time when the US has already reduced tariffs on China from 145% to 30% as compared to India's 26%, which is currently on hold. The US has levied only 10% tariff on India and the 26% tariff could be enforced again from July. Another apparel company, Gokaldas Exports , said in its investor presentation that higher tariff on China and political uncertainties in Bangladesh contribute to the overall attractiveness of India as a sourcing destination despite short hiccups. FMCG major Tata Consumer Products CEO Sunil D'Souza said since products like coffee and tea, which it exports to the US, are not produced there and hence "from a competitive scenario, we'll be on even keel with everyone else" and not way off. Havells has just sent its first consignment of Made in India ACs to the US and the management said India will be a beneficiary of the US BTA. BlueStar and Amber Enterprises CEOs said they were receiving a huge number of export enquiries as companies prepared their supply chains for tariff disruptions. Titan Company 's CEO for international business, R Kuruvilla Markose, said the company is tracking competition on price increase in the US and expects the BTA will be signed quickly.
