Wistron with others set to resume production in Karnataka; lack of clarity for Foxconn, Oppo, Vivo
By MYBRANDBOOK
Wistron, the iPhone maker along with other ecosystem companies in Karnataka are set to resume production after attaining requisite permissions from state authorities. But companies such as Foxconn, Dixon, Samsung, Oppo and Lava who have factories in the Noida and Greater Noida region, Tamil Nadu and Andhra Pradesh continue to be in limbo owing to lack of clarity on starting operations in non-containment areas of the red zone.
“All mobile phone plants are closed. The first one is coming alive in Karnataka with all requisite permissions…However, Noida and Greater Noida region are the biggest concerns followed by Tamil Nadu and Andhra Pradesh,” commented India Cellular & Electronics Association (ICEA) Chairman Pankaj Mohindroo.
Wistron has a factory at a rented facility in an industrial suburb near Bengaluru which makes Apple iPhone 7, while iPhone XR is assembled by Foxconn’s Tamil Nadu plant. Foxconn through its Tamil Nadu and Andhra Pradesh plants also makes phones for Xiaomi and HMD.
The handset manufacturing industry has lost Rs 20,000-Rs 25000 crore in losses with production coming to a grinding halt in India due to the ongoing lockdown, as per ICEA estimates. The body represents the likes of Apple, Xiaomi, Oppo, Vivo, Foxconn and Lava.
ICEA, in its May 1 letter to home secretary Ajay Kumar Bhalla, said that disallowing all industrial activity within the larger administrative unit of ‘Red Zone such as city or district is not appropriate.’ “MHA order also states that permitted manufacturing activities are allowed outside the containment zone”.
Noida and Greater Noida house big factories of Samsung, Oppo and Vivo along with Lava and Dixon plants fall under the red zone. Oppo, Lava and Dixon have put in respective applications to seek approvals to restart their factories.
Sunil Vachani, chairman and managing director (CMD) of Dixon Technologies said that it plans to start all units by next week.
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