Flextronics Gets DTA Status For Its Chennai Facility

Company can now ship finished products locally

BS Reporter  |  Chennai   June 16, 2015 Last Updated at 16:58 IST

Electronics major Flextronics Chennai facility in Sriperumbudur has been granted the Domestic Tariff Area (DTA) status which will allow the company to ship finished products locally. Flextronics has been operating in Chennai since 2005 at the SIPCOT Special Economic Zone (SEZ).

The company said by having both DTA and SEZ status, Flextronics 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 bring to bear its supply chain services to support the burgeoning electronics sector in India.

Richard Hopkins, Flextronics' Vice President of Operations commented "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."

By having both DTA and SEZ status, Flextronics is able to produce and deliver products for both domestic and export markets, with zero customs duty.

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 that connect to Intelligence of Things (IoT).

The company would 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 intelligent manufacturing and engineering solutions while its Global Services &Solutions (GSS) facilities in Bangalore, Mumbai and Gurgaon offers after-market services including Temporary Import for Repair (TIFR), Temporary Export for Repair (TEFR), and spare parts logistics. In addition, its Global Business Services (GBS) function in Chennai and Pune also supports Flextronics CIP operations with centralised processing activities such as procurement.

The India Electronics and Semiconductor Association (IESA) claims that the electronics industry in India presents a $400 billion opportunity by the year 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.