Flextronics gets DTA status for its Chennai facility

Company can now ship finished products locally

Electronics maker Flextronics has been granted the domestic tariff area (DTA) status for its Sriperumbudur facility, allowing the company to ship finished goods locally.

Flextronics has been operating in Chennai from 2005, at the SIPCOT special economic zone (SEZ).

The company said by having both DTA and SEZ status, it would be able to produce and deliver products for both domestic and export markets, with zero customs duty.

The DTA status provides an added competitive advantage for Flextronics and would allow to service the domestic market and deploy its supply chain services to support the growing Indian electronics sector.

Richard Hopkins, Flextronics’ vice president , operations, said, “We also have the right building blocks and capacity to help our global customers, who wish to build, repair and ship their products anywhere in India”.

Flextronics Chennai Industrial Park (CIP) provides end-to-end supply chain services that include sub assembly, full assembly, repair and refurbishment of various products, including devices used in the delivery of Intelligence of Things (IoT).

The company would now manufacture energy-related products such as LED lights and electronic ballasts and GPS tracking devices for the domestic market.

“We are optimistic about manufacturing more innovative products for the domestic market in tandem with India’s burgeoning electronics market and industry,” Hopkins said.

Flextronics Chennai Industrial Park (CIP) provides manufacturing and engineering solutions, while its Global Services &Solutions (GSS) facilities in Bengaluru, Mumbai and Gurgaon offer after-market services, including the temporary import for repair (TIFR), temporary export for repair (TEFR), and spare parts logistics. In addition, its Global Business Services (GBS) functioning in Chennai and Pune also support Flextronics CIP operations with centralised processing activities such as procurement.

The India Electronics and Semiconductor Association (IESA) estimated the electronics industry opportunity in the country at $400 billion by 2020.

Queried about revenue and investment plans, he said the company do not track revenue according to country and are not able to provide forward looking figures. "However, we have long-term interest in India and are optimistic about the growth of the Indian market".

The spokesperson said the company has room for expansion / growth at Flextronics CIP and currently have a dedicated building housing our DTA-related operations.

Flextronics Chennai provides complete supply chain services for diverse products that enable intelligence in everything from computer and communications equipment to energy, food testing equipment and mobile devices, from sketch to scale. Beyond manufacturing, Flextronics also provides centralized processing activities for its global operations from its offices in Chennai and Pune , which include a workforce of more than 5000 employees.