SPV to make Intel-based laptops, servers in State

The State government has approved the formation of a special purpose vehicle for manufacture of Intel-based laptops and servers in the State.

Intel, a multinational corporation and technology company headquartered in Silicon Valley in the US, has shown interest in partnering with the State in developing an ecosystem for manufacture of laptops and servers here.

Equity distribution

A preliminary survey by the Hardware Mission under the State IT Department has found it feasible to have a joint venture in PPP mode with industrial units capable of manufacturing components for laptops and servers.

The SPV will be formed with 23 percent equity to KSIDC, 26 percent to Keltron, 49 percent to UST Global, and the balance 2 percent to be held by start-up companies recommended by the IT department. KSIDC is the nodal agency for the formation and registration of the new company.

The shareholders’ agreement to form the SPV was executed by KSIDC, Keltron, UST Global and Acceleron Labs (the start-up) here on Monday.

Project cost

The estimated cost of the project is ₹30 crore, with an initial capital outlay of ₹10 crore, which will be funded by the stakeholders. The initial manufacturing capacity will be around 2.5 lakh laptops a year.

In the first phase, laptops from SKD (semi-knock-down kits) procured from China partner of Intel will be assembled here. In the second and third phases, the focus will be on localisation of the components. The SPV will scale up capabilities after building sufficient experience in laptop manufacturing.

COMMENT NOW