Anil Agarwal to set up $10-bn LCD panel plant in Maharashtra: report
13 Feb 2016
NRI billionaire Anil Agarwal-led Vedanta Group will set up the country's first LCD panel manufacturing plant in Maharashtra, with an investment of $10 billion (Rs68,000 crore), giving a leg-up to Prime Minister Narendra Modi's `Make in India' programme.
Agarwal told The Economic Times in an interview that the investment will be made through a new company, called Twinstar Display Technologies, which in turn will be promoted by holding company Volcano Investments.
Volcano Investments and Vedanta group firm Sterlite Technologies will sign a memorandum of understanding (MoU) with Maharashtra government to set up the facility. The signing of the pact will be the main attraction at the first day of the 'Make in India' week beginning tomarrow.
"All over the world you see Made in China electronics, but India can also manufacture its own electronics," Agarwal said. "We worked with the government and agreed this project has to be a Made in India product."
Agarwal said the company will endeavour to make India a significant export hub of display units with the setting up of the unit, known as Panel FAB. India's LCD market is entirely import-dependent.
Twinstar Display may look for an international strategic partner or collaborate on technology with companies abroad, Agarwal said. "This is the time to strike. This is the time to build your capacity because it will be cheaper. This is the time when people and talent are available," he said.
The project is being set up under Maharashtra's new policy on fabrication units that aims to boost domestic manufacturing of electronics and reduce import bill.
Under the agreement, ''Twinstar Display Technologies will invest $10 billion over five phases in setting up India's first and one of the world's largest LCD fab units," Twinstar Display said in a statement.
"We have made good of the promise we made to the nation during the Digital India Summit in July 2015. We are happy to participate in two of the government's key initiatives the 'Make in India' campaign as well as 'Net Zero Electronics import by 2020'," Agarwal said.
Panel FAB is expected to begin production by 2018, with full production over next 10 years subjected to external environment. Upon completion, the project will provide direct and indirect employment to over 30,000 people, the firm said.
It will also contribute 7-10 per cent to Maharashtra's industrial gross domestic product. The project requires about 300 acres of land and two locations have been shortlisted so far, it added.
India's is one of the fastest growing markets for LCD Panel based products such as TV, smartphones, tablets, desktops and Laptops.
At present, all LCD panels are imported. By 2020, India's LCD Panel import bill is expected touch $10 billion. Panel FAB will not only significantly reduce this, but also earn foreign exchange through exports.
The success of the FAB unit will depend on how Twinstar Display Technologies develops the necessary ecosystem around it and brings in ancillary partners to the country so as to make India a leading electronic system design and manufacturing (EDSM) destination.
