For domestic mobile phone companies, the investment threshold is Rs. 200 crore over four years and sales criteria is Rs. 5000 crore in five years and for components it is Rs. 100 crore for 4 years and Rs. 600 crore of sales in 5 years.
LG Electronics India will donate products like water purifiers, air conditioners, refrigerators and TVs to the hospitals. Samsung India, on the other hand, will provide preventive kits to hospitals, which includes a surgeon gown, face mask, gloves, preventive eye wear, hood cap and shoe cover.
On the impact of the outbreak, the company said: "COVID-19 has affected the supply of some components to our manufacturing facilities and volume of business in 'Servicetec' segment. This is likely to impact our planned production and volume of business in excess of 10 per cent for the month of March."
"Two long-term policy decisions have been taken to make India hub of electronics manufacturing in new directions and medical electronics. Cabinet has approved production linked-incentive for electronics companies. We will give Rs 40,995 crore in the coming five years for production linked-incentive," Union Communications Minister Ravi Shankar Prasad said.
Vivek Sharma, MD at Panasonic Life Solutions India, said these stores will serve as experience centres for consumers and influencers, He said the stores will target customers as well as builders, contractors and architects. The company has opened the first such outlet in Hyderabad will be setting up these stores in a franchise owned and operated model.
Smartphone makers such as Xiaomi, Vivo and OnePlus plan to absorb the exchange rate impact as of now, with the industry fearing a slide in sales since prices are all set to go up due to increase in goods and services tax on smartphones to 18% from 12%. But they will factor the exchange rate in the pricing of future launches, the executives said.
Air-conditioner maker Carrier Midea India is reaching out to its suppliers, many of whom are owned by one of its parent – China's top white goods manufacturer Midea Group to set up units in India, after disruption in supplies for the Indian industry due to Covid-19 outbreak.
“There is an estimated business loss of about Rs 1,000 crore of IT products as well as Rs 350 crore worth of mobile handsets in January and February due to the spread of the coronavirus,” Praveen Khandelwal, secretary general of the Confederation of All India Traders, told.
The NAA further said in its order that Samsung India had increased prices for appropriating the tax reduction 'with the intention of denying the benefit to consumers.'
Supplies of the locally manufactured iPhone XR and 7 are not impacted, they said TCL and Xiaomi televisions too are in short supply and Xiaomi is postponing its entry into air-conditioners by a few weeks. The fourth-largest smartphone brand Realme is facing a squeeze on the supply of new smartphone models like the C3 and 5i, the executives said.
The Gujarat-based company, which is also the world's largest wall clock manufacturer, expects revenue from its home appliances and fans division to be the key growth driver, contributing almost Rs 1,200 crore by fiscal year 2024-25. The company is also expanding its sales network and has also started its own e-commerce platform.
The growth trajectory in the Indian wearables market continued to ascend strongly registering 168.3% on-year growth in 2019 shipping a total of 14.9 million units of wearable devices.
All large manufacturers including LG, Voltas, Samsung, Haier and Panasonic have decided on a 3-5% price increase across models. This means a price hike of Rs 3,000-4,000 for premium and large capacity models. Sales executives at LG and Samsung, have informed of a 3-4% price hike for microwave ovens and washing machines from next week.
Industry executives said the move will trigger another round of price war in the television segment since Realme, like Xiaomi, has an aggressive pricing strategy in India and the two-year old Chinese startup has pushed out well-entrenched competitors in smartphones.
Smartphone and consumer electronics companies in India said they were staring at production cuts and possible delays in launch of new products due to the coronavirus outbreak in China that has disrupted component supplies. The scale of the impact would depend on how long the disruption continues.
The ESDM clusters will be developed at Chikkaballapura, Mysuru, Kolar and Dharwad (Hubballi) districts under the cluster development programme.
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