THIRUVANANTHAPURAM: Kerala’s own laptops and computer servers in collaboration with Intel Company headquartered in Silicon Valley of the US, would be a reality in a month or two as the state government has ordered Keltron to form an SPV with the Kerala State Industrial Development Corporation (KSIDC) and electronic component manufacturers in the state as major stakeholders.
Keltron and KSIDC will have 26 and 11 per cent stakes, respectively, in the new company and the balance equity could be offered to other manufacturers involved in the manufacturing of various electronic components.
The company will start functioning by taking the order of the Kerala government which is planning to purchase 1 lakh laptops per year for the next three years from the new company. The brand name of the new company and the product is yet to be finalised. However, a couple of names are doing the rounds, which include Kerala Laptop Ltd as well.
According to a government order issued by Sanjay M Kaul, secretary, Industries Department, the new venture would be advantageous to the development of the electronic manufacturing sector in the country. A preliminary survey by the Hardware Mission under the IT Department has revealed there are several industrial units operating in the state like UST Global, SFO technologies, FCI OEN, apart from Keltron.
T R Hemalatha, managing director, Keltron, said a first round meeting with various stakeholders was held and electronic components makers who took part have evinced interest in being part of the new company.
The SPV can be formed in a month and start functioning without major delay, she said. It has been decided the land and building of Keltron at Manvila in Thiruvananthapuram lying idle can be used for the venture.
The new brand will be a joint venture of various stakeholders and the final product will be released with the attestation of Intel with whom the state government has entered into a MoU for creating an electronics industries ecosystem last November.
Terming the new initiative will be a catalyst in the electronic ecosystem, M Sivasankar, secretary, Department of Electronics and IT, said Keltron would be taking the lead role in the new venture along with KSIDC.
The equity of Keltron will be limited to 26 per cent and its maximum exposure to the venture is limited to `10 crore.
The Hardware Mission study has found around `30 crore is required for the venture, including an initial outlay of around `10 crore and the debt could be raised as loan by the SPV.
To make the venture viable, per year 2.5 lakh laptops are to be sold and the state government’s aggregated demand for one lakh laptops per year for the next three year is guaranteed to the new company at a price not exceeding 15 per cent of the GeM price of a similar specification for a period of three years.
SPECIAL PURPOSE VEHICLE
Keltron will provide their building at Manvila in Thiruvananthapuram to the SPV on a long-term lease
The SPV will be formed in a month with a capital of K30 crore
Keltron will have a maximum equity share of 26 per cent and its exposure capped to C10 crore
KSIDC will have 11 per cent equity share and the rest would be offered to all other stakeholders involved in the hardware ecosystem
The SPV would be managed professionally as a majority stake in the SPV would be with private players
Per year, 2.5 lakh laptops are to be sold to make the venture viable
The venture will get the order of 1 lakh laptops of state govt per year