Chennai: Amber Group plans a rapid ramp-up of commercial production of Oppo branded smartphones with 8 million units by the 2028 financial year, which is roughly about 20% of Oppo’s India volume. It plans to ramp it up to 15 million in FY29, with trial orders beginning by the end of the current fiscal.Amber Group joined Indian electronics manufacturing companies venturing into the mobile segment through a partnership with Chinese brands. It entered a collaboration agreement with Oppo Mobiles India on Thursday to make smartphones for Oppo, Realme and premium brand OnePlus. The company plans to sub-lease Oppo’s existing facility in the country, thereby escaping press note 3 approval, which put tighter restrictions on Chinese FDI, that’s holding the Dixon-Vivo joint venture.Speaking on an analyst call on Saturday, Jasbir Singh, executive chairman and CEO of Amber Enterprises India, said they expect to start with assembly and surface mount technology and increase the domestic value addition to 35%-40% in six years, tapping its existing strengths in electronics components, compared to the current 10%-12% local value addition. “We have a clear roadmap for gradually increasing value addition beyond PCBs, which would increase the margins and total addressable market size,” he said. When asked about revised mobile PLI benefitting value addition, he said that though details remain speculative at the moment, Amber is already executing its value-addition roadmap and Oppo India will actively help bring more global component suppliers to the country.While the mobile assembly is a low-margin business, Amber said it’s part of balancing existing value-added, high-margin business with high volume, asset-light business and reducing the seasonal concentration inherent in its core room air conditioner (RAC) business. It estimates about Rs 50 crore capex, focusing on setting up basic assembly and SMT.
