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Mumbai (Maharashtra) [India], May 26 (ANI/NewsVoir): BSE and NSE listed Electronics contract manufacturer Optiemus Infracom Ltd. (BSE: 530135; NSE: OPTIEMUS) recently announced completion of sale of one of its real estate assets in Noida for Rs 285 crore, which it plans to invest in expansion of mobile phone production business.
Optiemus Infracom Limited is a diversified, award-winning, high-performance telecommunications enterprise with over 25 years of multi-domain experience including management, distribution & marketing of mobile & telecom products in the Indian subcontinent.
Optiemus is one of 16 entities whose proposal under the PLI scheme has been approved by the government. The PLI scheme for large-scale electronics manufacturing was notified on April 1, 2020.
"This is to inform you that after obtaining approvals from shareholders and other concerned authorities, the execution of sale and transfer of land together with structures/building of the company...has been completed on March 04, 2021 for a total consideration of Rs 285 crore," Optiemus Infracom said in a regulatory filing.
The company said the sale of the real estate asset is in the overall best interest of the company as after exiting from its non-core asset, the company will now mainly focus on its core business of manufacturing of mobile and other mobility products to achieve maximum advantage of the PLI scheme.
"The net proceeds of the above mentioned transaction will mainly be utilised towards expansion of mobile manufacturing business through Optiemus Electronics Limited, subsidiary company and to repay the existing loans and reduce interest burden," the filing said.
Optiemus Infracom and Wistron jointly made mobile phones for LG, Blackberry, HTC, Oppo, OnePlus, and Jio Phones through their joint venture Optiemus Electronics. Current clientele of the company includes many MNCs like LG, Zen Mobile, and HTC etc. Further the company is focusing on adding new international customers and gaining market share. Management is meeting several international brands and improving its global footprints.
Optiemus Electronics Limited is engaged into the business of manufacturing of telecom products in India at its state-of-art ultra-modern plant near Noida. It provides a complete end-to-end solution to global and Indian brands encompassing world class manufacturing infrastructure, distribution, retail and after sales.
Optiemus Infracom's in-house brand portfolio consists of five differentiated brands that are designed and positioned to audiences across the economic & geographical classifications.
Optiemus Manufacturing capabilities are a combination of three Individual production units, two state-of-the-art handset manufacturing units with a combined capacity of 1.5 million per month units and have over 1.5 Lac Sq. ft. of production area and 35 assembly lines. Third is the state-of-the-art glass cutting and finishing facility with a capacity to produce 500,000 premium tempered glass units per month.
Other than mobile manufacturing the company has also been selected for making IT hardware. As per the management the company has already received the licenses.
On 4th May 2021, Company was selected and has received license to make IT Hardware under PLI scheme. The PLI scheme for IT hardware offers an incentive of 2-4 per cent on net incremental sales of goods over the base year of 2019-20. The benefits will be available till 2024-25, starting 1 April 2021. According to government estimates, companies eligible for the scheme will be producing IT hardware worth Rs 1.6 trillion over the next four years. Out of this, exports will account for 37 per cent or Rs60,000 crore. India's domestic value addition in IT hardware manufacturing is expected to grow from 5-12 per cent to 16-35 per cent over the next four years, it added.
With sizeable investments lined up, OEL aimed to further enhance its manufacturing and design capabilities. OEL has managed to win the trust of many local as well as global brands, due to its commitment towards Quality, Timely Delivery, Flexibility as well as Customer Satisfaction.
Optiemus Infracom has now purchased the entire stake of Wistron in Optiemus Electronics. Optiemus Infracom chairman Ashok Kumar Gupta had earlier told PTI that the company was in process of setting up a new plant.
Earlier Optiemus already held 80.09 per cent equity of its subsidiary Optiemus Electronics Limited. The company has successfully taken over the remaining 19.91 per cent stake by way of transfer from Wistron Corporation. This would strengthen the ownership and control as well.
Optiemus has healthy order-book across key segments and significant contribution is expected under the PLI scheme in the medium to long term. Management remains positive on future growth prospects given (i) the healthy order book across segments, (ii) addition of new clients, (iii) significant contribution from mobile PLI revenues going forward. Currently the company is turning around and is at an inflection point.
This story is provided by NewsVoir. ANI will not be responsible in any way for the content of this article. (ANI/NewsVoir)
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