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Kerala government all set to manufacture electronic hardware; may ink deals with Intel, UST Global

Kerala government, electronic hardware, UST Global, intel, Kerala, Amphenol FCI OEN, PCB manufacturing, Kerala Electronics and Hardware Mission  The Kerala Electronics and Hardware Mission had conducted workshops; consultations with industry experts and associations were carried out to identify the key ‘pain areas’ and potential growth areas.

The Kerala government is readying for a studied foray into electronics hardware manufacturing, after a panel on the Kerala Electronics and Hardware Mission submitted its detailed report to chief minister Pinarayi Vijayan this week. Based on the recommendations, the state government is likely to ink a bunch of MoUs on joint ventures in hardware manufacturing with the likes of Intel and UST Global. “The report outlines a detailed roadmap to set up a global hardware and electronics manufacturing hub,” says M Sivasankar, principal secretary , IT , Kerala. “The plus points for the state would be its skilled human resources, emerging entrepreneurial culture and high consumption.” According to the report, Kerala’s import-dependent, consumption-driven economy could potentially leverage the high aggregated domestic demand to grow its internal manufacturing system. It also has higher wages and worker-related costs compared with other regions, but the availability of skilled manpower and better socio-political climates favours high-end manufacturing in niche areas. If such units are given an initial boost by providing early market in government-driven projects, they could reach the threshold to achieve a sustainable model, the report says.

The Kerala Electronics and Hardware Mission had conducted workshops; consultations with industry experts and associations were carried out to identify the key ‘pain areas’ and potential growth areas. “The gap between the policy and actual implementation was cited as concern and demands were put forward for a directory of services-related hardware available in Kerala (such as PCB manufacturing, assembling). A quarter of the companies surveyed urged more investment into infrastructure, 22% requested for innovation/R&D support, 23% wanted government orders for their company products and 20% said they need incentives for local manufacturing,” said Jayasankar Prasad C, special officer for the Kerala Hardware Mission.

Kerala is betting heavily on electric mobility. The projects linked with converting state-owned Kerala Automobiles (KAL) to an electric vehicle (EV) manufacturing line for two- and three-wheelers have evinced strong response. The report also recommends utilisation of potential for an power electronics cluster in the state. Said Jayasankar Prasad, “Companies like UST Global, who have been supporting large OEMs in testing and validation, are keen to join hands with the government to enable the ecosystem. An MoU with Intel and UST for exploring the potential for PC and server manufacturing in the state is on the anvil. Once the feasibility is established, a joint venture with government and private players could be set up.”
Taking a cue from the successes of companies such as SFO, Amphenol FCI OEN, OEN Connectors and V Guard, several large players have evinced interest in relocating the manufacturing operations to Kerala.

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