Unit of Nokia in Sriperumbudur now acquired by Salcomp, Rs 2000 crores to be invested
Posted on: 26/Nov/2019 9:49:48 AM
The news that Finland based firm Salcomp, phone parts maker, has acquired a unit of Nokia and one of LiteOnMobile in Sriperumbudur near Chennai for nearly 50 million USD or Rs 350 crores has been the subject of discussion for many now.
The superb piece of information is Salcomp would be investing additional Rs 2000 crores and would be creating 10,000 new jobs. Spread across 1 million sq ft, Nokia factory was frozen by the tax authorities and for completing the process Salcomp had to get the approval from the state government plus from the tax department.
It was mentioned by a source that Salcomp had acquired only Nokia factory building and there are enough lands inside the SEZ .There is still no clarity regarding these lands and what the state government would do is not known now. It must be taken into account that WingTech was also actively pursuing the factory buy of Nokia.
Point to be noted is Nokia unit has been closed for nearly 10 years and Salcomp would play its role in reviving the unit. From the month of March 2020, the new unit would start its operations. This was mentioned by Mr. Ravi Shankar Prasad, Union IT minister in New Delhi.
Information is the new unit would entail an investment of Rs 2000 crores in 5 years. It is important to note that as many as 10000 people would get jobs directly and as many as 50,000 jobs would be generated indirectly. More than 55% of production facilities at Nokia SEZ are owned by Salcomp now. This was as per Mr. Sasikumar Gendham, MD of Salcomp India.
It was later revealed by a senior official belonging to the state industries department that it all began with Foxconn setting up its operations in this place. He added that there are other major players and these players have been in talks for setting shop in and around Sriperumbudur. At the 2019 Global Investors Meet or GIM, Salcomp signed MoU with TN government relating to an investment of Rs 500 crores in electronics manufacturing and these deals are part of this MoU.
For both domestic as well as export purposes, Salcomp develops and manufactures chargers and adapters for mobile phones and for other electronic devices is known. It is now brought out that Salcomp with 2 facilities in Chennai and one in Noida has got almost half of its global workforce in Chennai.
