Vedanta’s new display business CEO aims to build a $4 billion (₹32,800 crore) display factory in India and recruit global talent to fuel its growth in the electronics industry.
What Happened? With a focus on liquid crystal display panels, the unit plans to create 3,500 direct jobs and capitalise on India’s technology manufacturing ambitions, YJ Chen, the unit’s newly appointed CEO, said in an interview with Bloomberg.
He said that the business will look to hire talent from South Korea, Taiwan, Japan and other regions to set up an LCD panel fabrication unit in India.
Despite financial challenges and a heavy debt burden, Vedanta sees potential in the display business, which offers a less complex path ahead compared to its struggling chip venture. By partnering with Innolux Corp., an affiliate of Foxconn Group, Vedanta aims to manufacture glass and assemble LCD panels in its state-of-the-art factory.
Prime Minister Narendra Modi has pledged $10 billion (₹81,977 crore) to attract chip and display manufacturers, offering generous incentives to establish semiconductor and display fabrication sites in India. The company is banking on this crucial funding from the government to kickstart production by late 2025, even as its chipmaking endeavours have hit several roadblocks.
Get Ring The Bell, Benzinga India’s weekly briefing. Designed specifically for investors like you.
While established display giants like Samsung and LG are transitioning out of LCDs to advanced technologies, Vedanta seeks to capture India’s growing display market, which it projects to reach $30 billion annually. However, it will have to contend with cheap Chinese alternatives and keep up with evolving technology.
Read Next: Why Sheela Foam Shares Are Surging Today
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.