Acer Expands Puducherry Contract Manufacturing Capacity for Growth

India's top IT hardware company Acer is increasing its contract manufacturing plant in Puducherry and the surrounding Tamil Nadu to respond to surging demand and tap into export possibilities.

Acer collaborates with Puducherry-based manufacturing partner Plumage in the production of PCs, notebooks, all-in-one PCs, intellectual flat panels, and server-class PCs for its own subsidiary Altos India. The company is also increasing capacity at the Puducherry unit, with Plumage negotiating with the state government to acquire 15-20 acres to set up a larger unit. The unit currently has a single line of production that can manufacture 500 laptops per shift, or about 2 lakh units per year.

Acer India President and MD Harish Kohli informed that the firm would also set up a new contract manufacturing plant near Chennai in six to eight weeks. This would be with another vendor, already having business ties with Acer, entering the notebook manufacturing segment.

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Having set up its manufacturing unit in Puducherry in the late 1990s, Acer is now following its "Made for India, Made in India" strategy to design and make products locally. It also plans to export to the Southeast Asian nations of the Philippines, Indonesia, Thailand, Malaysia, and Vietnam, where Acer India's locally designed products are performing well in pilot markets.

Kohli supplemented that these products are now not even SKD kits but made completely in India, positioning the company for growth in both local and global business.