The Economic Times daily newspaper is available online now.

    Acer seeks to reap Make in India perks with switch to retail model and sell

    Synopsis

    The company would start manufacturing smartphones in India from its Puducherry unit in the next three months. It already assembles desktops here.

    ET Bureau
    NEW DELHI: Acer has sought approval from the Indian government to convert its local business model to retail from wholesale, as the Taiwanese electronics firm seeks to set up outlets to sell PCs and handsets directly to consumers here.

    The company would start manufacturing smartphones in India from its Puducherry unit in the next three months. It already assembles desktops here.

    Elevate Your Tech Prowess with High-Value Skill Courses

    Offering CollegeCourseWebsite
    MITMIT Technology Leadership and InnovationVisit
    Indian School of BusinessISB Professional Certificate in Product ManagementVisit
    Indian School of BusinessISB Product ManagementVisit
    Image article boday
    “We are extremely excited about Make in India and the time has come that India makes use of its educated manpower in the manufacturing space,” said Chandrahas Panigrahi, senior director of consumer business at Acer India. The Department of Industrial Policy and Promotion (DIPP) last month received Acer’s application seeking to change its business model in India. It is looking to sell both online and offline. Acer’s products include PCs, displays, projectors, servers, tablets, smartphones and wearables.

    Established in 1976, the company is present in 160 countries. Brands such as Levi Strauss, Puma, Adidas and Pepe have also applied for expanding their business to retail from wholesale, after the government relaxed foreign direct investment (FDI) rules for companies manufacturing in India, allowing them to enter wholesale, retail as well as the ecommerce space.

    Companies that have the licence for single brand retail and have their brick and mortar stores in India can also sell online. The government allowed 100% foreign direct investment in single-brand retail in January 2012. If the investment is for more than a 49% stake, it needs the approval of the Foreign Investment Promotion Board.

    Beyond 51% foreign direct investment, it is required that 30% of the value of goods be sourced from India, preferably from micro, small and medium enterprises, village and cottage industries, artisans and craftsmen. The government is considering relaxing the 30% sourcing requirement for global tech major Apple, under new rules applicable for companies bringing cutting edge technology to India.

    Foreign direct investment into India touched the highest ever at $51 billion during April-February in FY16.
    The Economic Times

    Stories you might be interested in