Trivandrum: The Government of Kerala has approved to form a Special Purpose Vehicle (SPV) for manufacture of Intel-based laptops and servers in the State with 23% equity to KSIDC, 26% equity to KELTRON, 49% equity to UST Global, and the balance 2% to be held by startup companies working in the hardware manufacturing field recommended by IT Department.
The roles and responsibilities of the SPV partners were discussed and a shareholders’ agreement to form the SPV was executed today. KSIDC was authorized as the nodal agency for all the works related to the formation and registration of the new company.
The estimated cost of the project is approximately Rs.30 crores with an initial capital outlay of Rs.10 crores which will be funded by the stakeholders. The initial manufacturing capacity will be around 2.5 lakh laptops per year. Phase 1 will focus on assembly of laptops from SKD (semi-knock- down kits) procured from China ODM partner of Intel. Phase 2 & 3 will focus on localisation of the components utilizing capabilities available in the ecosystem for PCBA, PCB cables – connectors, chassis etc.
The SPV will scale up capabilities to server class assemblies and components and IT product design capabilities after building sufficient experience in laptop manufacturing. SPV will initially leverage govt. opportunities for education, e-governance and shall target open market through local OEMs.
A venture like this would not only be very prestigious for the State but also would be very advantageous to the development of the electronics manufacturing sector in the country. A preliminary survey by the Hardware Mission under IT Department, Government of Kerala has found it feasible to have a Joint Venture in PPP mode with industrial units capable of manufacturing components for laptops and servers.
Kerala IT News
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