Amber Enterprises said on Saturday that its expects to start with manufacturing eight million units of mobile phones afrom year one onwards as a part of its manufacturing collaboration with Oppo Mobiles India Pvt., according to a conference call from the manufacturer.
The contract will have the latter manufacture mobile phones for the Oppo, OnePlus, and Realme brands in India. The brand expects to touch 13-15 million volumes in their second year of operations. Commercial production is set to commence by the first quarter of fiscal 2028. The manufacturing will be done in an existing facility.
The collaboration will not require PN3 approval, according to the company. PN3 is a a mandatory regulatory clearance required in India for any Foreign Direct Investment (FDI) originating from countries that share a land border with India. The mobile segment was described as an :asset light, high volume and low margin business" by Amber Enterprises.
The firm expects to seen an improvement in margins with volume scale and localisation. Will focus on expanding to components like printed circuit boards. The fourth quarter of fiscal 2027 will be the learning period for Amber and commercial production begins by first quarter of fiscal 2028.
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The margins will be inline with the industry expectations, as per the company . The ex-PLI (production linked incentive) margins are around 1.5-2% on Ebitda level. The firm stated that it was difficult to comment on PLI as it do not even have the draft for the second PLI.
Oppo's existing contract with other EMS (equipment manufacturing service) players will continue to remain, as per the concall. The main focus remains to penetrate more in mobile component basis. Working capital requirement is very minimal in this segment.
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