Hyderabad, Nov 30 (KNN) Skyworth group, a USD 5 billion dollar conglomerate in consumer electronics is planning to invest over Rs 700 crore (100 mn US dolars) in its manufacturing unit to be set up in Hyderabad.

The company is into manufacturing of LED TVs, air conditioners, refrigerators, washing machines, set top boxes, and Lithium batteries for use in Electric Vehicles. The proposed unit would provide direct and indirect employment to over 5000 people.

KNN India spoke to Anil Reddy Vennam, President of The Federation of Telangana and Andhra Pradesh Chamber of Commerce and Industry (FTAPCCI) on Saturday to know how this investment will nourish the MSME sector and what kind of ancillary units will be benefitted.

During interaction, Reddy said, ‘‘Definitely it will be good for employment'' but also suggested some measures to Skyworth to boost MSMEs who are the worst sufferer of economic slowdown.

''My suggestions to this organistation will be that they have to make some ancillary units so that it will be easy for them to make small production under this small sector and they can assemble it to move forward to full production,'' he said.

When being asked that how the said investment will boost the MSME sector, he said that it all depends on the structure, how they are (Organisation) manufacturing.

''Investing 200 or 700 crore won't do anything, if they are going to have automatic machines for carrying out production works, so definitely, it won't be useful to MSMEs because these automated machines will snatch employment,'' he asserted.

''Any organisation which is coming with the huge investment they should always take the support of MSMEs. Let some products to be manufactured by those people (MSME) in ancillary units and let critical products to be manufactured by bigger units and after that they can be assembled to produce the final product which will be better for the MSME sector.'' he avowed.

Further, while answering a question that how he sees this investment, he said ''any investment is good for any state, country but simultaneously it should be in line with the requirement of MSME. Manufacturing of some components should be give to ancillary units for the small scale sector so that the employment will be there they will be comfortable and the company can also indulge themselves in mass production.''

The Skyworth group chairman Lai Weide signed an MOU with Telangana Government, in the presence of IT Minister K T Rama Rao and other officials here on Friday. As per the MOU, the Skyworth will invest US $100 million in the first phase to manufacture electronic goods.

According to an official press release, Skyworth Group will set up a state-of-the-art manufacturing base titled Radiant Appliances & Electronics Pvt Ltd, in a 50 acre campus. Skyworth & METZ brand LED TVs, which offers cutting edge technology and latest features, are already into production. In its second phase of expansion, the company will manufacture of latest generation Lithium batteries for Electric Vehicles, and wide array of white goods including air conditioners, refrigerators and washing machines.

Speaking on the occasion Weide said that Skyworth is highly encouraged by the electronics manufacturing industry supportive policies of Telangana Government. Besides bringing high quality manufacturing skills, scale of economy through very efficient supply chain, Skyworth would bring futuristic products to Indian consumers.

Executive Vice President of the company Wang Zenjun said that India is a very strategic market under Skyworth Global Expansion plan and it is noteworthy that quality, decision and latest technology AIOT products of Skyworth & Metz were well received by Indian consumers.

“Skyworth is committed to Indian Markets and would continue to make substantial investments in India market in a phased manner” said Zenjun.

IT Minister KT Rama Rao expressed his happiness that Skyworth chose Hyderabad as its manufacturing destination and it would generate employment opportunity of more than 5,000 people. He pointed out that the present government was industry proactive which was reflected in its industrial policy and revolutionary measures such as TS-iPASS.

KTR said that the availability of skilled manpower, best law and order, latest infrastructure and excellent national and international connectivity makes Hyderabad the most favourable for industrial investment. He congratulated Skyworth Board chairman and his team for starting the manufacturing in Hyderabad.