New Delhi: US electronics manufacturing services (EMS) company, Samnina-SCI Corp., has entered into an agreement with the government of Tamil Nadu to set up a manufacturing technology campus in India at Orgadam, near Chennai.
The facility will offer solutions to original equipment manufacturers (OEMs) in the medical, communication, automotive, multimedia, defence and aerospace sectors. A press statement by Sanmina says the services would be customized to the quality requirements of the OEMs and will help them reduce market risks and decrease time-to-market.
With an initial investment of Rs250 crore, which may go up to Rs315 crore, the company would be offering direct employment to about 1300-1500 initially, and is likely to step up the headcount to 10,000 in five years time.
The campus, the second largest by Sanmina-SCI anywhere in the world, will be spread over 350 acres and will be a designated SEZ as per government of India regulations. Sanmina’s largest campus is in Mexico.
”The Tamil Nadu government has got the go-ahead for the SEZ from the board of approval. The state will facilitate all clearances including the notification from the Centre through the single window system”, said Shaktikanta Das, secretary, Industries Department, government of Tamil Nadu. The SEZ would cater to both domestic and international markets.
As a part of its expansion plans in India, the electronics manufacturer intends to relocate its existing activities in Chennai, such as engineering, supply chain management and IT services to the new facility. This will help them offer their customers a comprehensive range of services from an integrated campus.
The Chennai region was chosen for its infrastructure, and for the fact that Sanmina’s top customers have an established presence in the region. ”Chennai is known inside Sanmina SCI as Silicon Nadu (Silicon state) as it is the emerging technology hub ”, said Hari Pillai, president, global EMS operations, Sanmina, in an e-mailed response to livemint.com.
Sanmina SCI Corporation, a Nasdaq listed company, is a leading global player in the electronics contract manufacturing segment and one of the most diverse EMS providers, with fiscal year 2006 revenues of $10.96 billion. With a history of many years of manufacturing and engineering excellence, the company is all set to strengthen its presence in India, reaffirming the long-term significance of this important market.