Fiber broadband equipment manufacturer GX Group is reportedly eyeing a new producing unit in India at an outlay of Rs 100 crores ($13.9M) to export products worldwide.
Netherlands-based fiber broadband device maker GX Group is eyeing a new manufacturing facility in India for worldwide export this fiscal, according to a report by ETTelecom. This project has an initial investment of Rs 100 crores, equivalent to $13.9 million to back land acquisition, building, and machinery. It will be the second production site of the company in India.
The company has announced to focus on manufacturing Wi-Fi routers, access points, Gigabyte Passive Optical Network (GPON), and XGS PON in their new facility. Moreover, it intends to overhaul its export strategy of connectivity devices. The CEO of GX Group India, Paritosh Prajapati has confirmed that this production will not only be for the Indian market but also the global market including Europe. At present, it is expanding into African markets as well.
The multinational has revealed that this project aligns with the central government’s ‘Make in India’ initiative. It already develops software solutions domestically, and intellectual property (IP) and design rights are registered in India. The CEO has said that the company is currently evaluating site options in states like Gujarat, Tamil Nadu, and Uttar Pradesh. The basis of this evaluation is ecosystem maturity and availability of incentives. They are focusing on building a whole ecosystem, where the product will be controlled end-to-end.
GX Group is among the 42 companies qualified for the PLI scheme by the Indian government. In 2021, it established a facility in Manesar, Haryana, investing nearly Rs 125 crores, as a part of the Dutch Good Growth Fund (DGGF) initiative. Last fiscal, the European company was granted nearly Rs 200 crores ($2.39M) by the Netherlands government-backed investment to expand manufacturing operations in India.
The European fiber internet component maker is already a supplier of broadband hardware to Indian companies like Bharti Airtel, Vodafone Idea’s You Broadband, and the government-run BSNL. The public sector segment accounts for approximately 10% of the company’s total revenues in India. It believes that, given its status as a “trusted vendor” and its ongoing investments in the country, it should be given equitable access to the domestic market.
