Formation of an SPV for manufacture of laptops & Servers in Kerala
Intel, an American multinational Corporation and technology company, headquartered in Santa Clara, California, USA, in the Silicon Valley, has shown interest in associating itself with the State of Kerala for a venture in developing an eco-system for manufacturing laptops and servers in Kerala. 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.
Government of Kerala has approved to form an 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 it by start up companies working in the hardware manufacturing field recommended by IT department.
The estimated cost of the project is approx. Rs.30 crores with an initial capial 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.
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.
KSIDC was authorized as the nodal agency for all the works related to the formation and registration of the new company.
The roles and responsibilities of the SPV partners were discussed and a shareholders’ agreement to form the SPV was executed between between KSIDC, KELTRON, UST Global and Acceleron Labs (start-up) on Monday, 30.07.2018 at KSIDC.