The newly appointed chief executive of Vedanta’s unused displays business is looking to hire global talent to build and run a $4 billion (roughly Rs. 32,811 crore) factory in western India.
YJ Chen, who previously worked at Chinese display maker HKC, said the display enterprise will soon start recruiting from South Korea, Taiwan, Japan and other regions to set up a liquid crystal display panel fabrication unit in India. He said that this factory will create 3,500 direct employment.
“We need a lot of technicians, very talented people,” Chen, who has 23 years of experience in the display industry, said in an interview in Mumbai, India’s financial hub. “That’s the biggest challenge – the people.”
Even as it grapples with a heavy debt burden, billionaire Anil Agarwal’s metals and mining group is expanding into electronics components to take advantage of India’s push to become a technology manufacturing hub. The display business is separate from Vedanta’s struggling chip venture and may find an easier path to success as it is a less technically demanding venture.
Vedanta, which has partnered with Foxconn Group affiliate Innolux for the display business, plans to make glass and assemble LCD panels at its new factory. Chen said the unit could start production by the end of 2025 if it receives significant funding from Prime Minister Narendra Modi’s government.
PM Modi has pledged $10 billion (about Rs 82,028 crore) to woo chip and display makers to India, and promised that his administration will bear half the cost of setting up all semiconductor and display fabrication sites. Although Vedanta’s chip plans have not yet received government support, it may find it easier to win state incentives for its display business with key technology partnerships. Vedanta also owns Japan-based Avanstrate, which makes layers used in LCD panels.
Meanwhile, the world’s top display companies are gradually phasing out LCD technology and moving toward faster OLED. South Korea’s Samsung Display, a leader in display technology, has shut down LCD production and is pouring billions of dollars into creating the next generation of displays. Its domestic rival LG Display is similarly reducing LCD manufacturing.
With its display push, Vedanta is trying to grab a share of India’s display market, which is expected to grow to $30 billion annually over the next seven years. It will have to compete with cheaper Chinese LCDs and develop new displays for long-term success.
“We need to build our own supply chain in India,” Chen said. “We will focus on new designs to reduce costs and compete with the Chinese.”
© 2022 Bloomberg LP
