Handset manufacturers stare at upto Rs 15,000 cr production loss amid lockdown
COVID-19 pandemic has churned out everything, sparing nothing. The handset manufacturing industry in India is staring at close to Rs 15,000 crore in losses as production grinds to a halt amid the three-week nationwide lockdown that started on Wednesday.
Foxconn, Flex and Wistron, which together make the bulk of the smartphones sold in India, are closing operations, government and industry officials said.
At present, we have a turnover of between Rs 500 crore and Rs 700 crore per day. So, a shutdown for about three weeks essentially means a loss ranging between Rs 10,000 crore and Rs 15,000 crore,” Pankaj Mohindroo, Chairman of the Indian Cellular & Electronic Association of India, as per a news source.
The association represents smartphone manufacturers such as Apple, Lava, Oppo and Vivo.
The government is monitoring the situation very closely and is in touch with all electronic manufacturers.
“As and when production starts, there will be a lot of rush at the ports, so we will intervene at that period to ensure smooth transition to resuming production on full scale,” an official said.