Taiwan-based Delta Electronics will invest $225 million (about Rs 1,460 crore) in setting up a power supply manufacturing plant and product development center in India next year.
"We are in the process of acquiring land in Tamil Nadu for setting up a power supply manufacturing unit. We expect the land title to be transferred to us by November. The first set of investment of $150 million of the total commitment will be made next year," Delta India Electronics Managing Director Dalip Sharma said at Renewable Energy India Expo.
The investment is part of the $500 million investment commitment made by the company's CEO Ping Cheng at the Digital India event held in July. Sharma said that Delta will hire 5,000 people to work at this plant over a period of five to seven years. "We expect to approach the Department of Electronics and IT for approval under MSIPS by end of this year," Sharma said.
The Modified Special Incentive Package Scheme (MSIPS) provides subsidy for investments in capital expenditure, which is 20% for investments in special economic zones (SEZs) and 25% in non-SEZs. It also provides for reimbursement of countervailing duty or excise for capital equipment for the non-SEZ units. The company already has a manufacturing unit at Rudrapur in Uttarakhand. The company is in process of setting up a research and development centre in Bengaluru that will work on software data analytics solution and high power technologies. "We in the final stage of acquiring land for the R&D centre. Delta will invest another $75 million on this centre and would be hiring 400 engineers for it. Hiring will start from mid next year," Sharma said. The company deals in energy solutions, digital surveillance, solar inverters, industrial automation, projectors and commercial displays. Sharma said that Delta India Electronics registered revenues of Rs 1,000 crore in 2014 and expects to clock growth of about 35% by end of this calendar year. "We are cash flow positive and registering profit. This year we expect our revenue to be around Rs 1,350 crore. We have been following a stable business model. Now we see time is ripe to scale up our business with fresh investments," Sharma said. Cheng committed that investment in India will be made over a period of next 10 years and will create 20,000 new jobs in the country.