Indkal, the official licensing partner of US-based power tools and home appliances maker BLACK+DECKER and consumer technology giant Acer, is planning to increase local value addition in its manufacturing process. Currently, the company manufactures 70 per cent of its products locally, and targets to increase this figure to 90 per cent by the end of the year.
The company, which launched a new range of televisions with an AI-enabled chipset in August, manufactures products entirely in India, according to Anand Dubey, CEO of Indkal Technologies. “Localisation and value addition are the top focus areas for us,” he told businessline.
The company was constantly exploring ways to increase the local manufacture of components. “Our localisation efforts are particularly aggressive in segments such as smartphones, smart televisions, and air-conditioners,” he added.
While Indkal sources some components and sub-assemblies from abroad due to local manufacturing limitations, these parts are imported based on their specifications and the most effective sourcing options.
Manufacturing locally will help reduce costs. The company has observed cost optimisation between 8 and 12 per cent as part of its localisation efforts. This cost reduction was huge in a product category in which the retained margins are usually in the low single-digits , noted Dubey.
However, manufacturing locally presents challenges, particularly due to the poor availability of key components in the country. Nonetheless, with the government’s efforts to enhance this ecosystem, there is a strong push to improve local component manufacturing, he said.
Additionally, Indkal plans to continue expanding its workforce, aiming to triple its headcount each year. “With our growth trajectory becoming sharper, we expect this number to rise even further,” Dubey added.