Acer’s Harish Kohli discusses Make in India, OEM partnerships, and sustainability

In an exclusive interview with ET Edge Insights, Harish Kohli, President of Acer India, illustrates the brand’s strategic vision, delving into critical issues such as Make in India and PLI initiatives, and expertly revealing the company’s ongoing dedication to sustainability and cutting-edge technology trends.

Edited interview excerpts

How do you look at Make in India initiatives with regards to your industry and how does it align with Acer’s vision of self-reliant India?

Acer has consistently been a prominent player in the global manufacturing landscape, and this has always been our core strength. Way back when we came in 1999, the first thing that we did in India was to fix up a manufacturing unit when most of the people were only importing finished goods.

For us, manufacturing, processes, and quality all go hand-in-hand with any of the things that we do, and that is our prime area. Now with the initiative that the government has been taking over the years to bring in industry over here the products would be made in India. The last three or four years we have even started to look at products which were other than the ones which we were making out of our Pondicherry factory. Today we look at notebooks, IFB panels, monitors with a concern. We already started making these products as far as they are concerned in India, and we are looking forward to doing much more.

Today there could be only a 20% of value addition that we do in India but the idea is to take it to maybe 50% – 70%. I must say that the government of India is very serious and I can see that effect happening. The ecosystem is being developed, and it will assist the entire industry in producing products in India.

How does Acer’s partnership with original equipment makers in India benefit the local ecosystem?

Ultimately, Original Equipment Manufacturers (OEMs) gravitate towards countries with a substantial production volume. Having only one company contribute 40% – 50% of the output doesn’t provide the necessary scale to attract OEMs to invest in a particular region. However, the current unified efforts by the government, urging localisation in India, reflect a collective industry commitment to achieving the production volumes required to allure such stakeholders.

We can see the traction already, and many Taiwanese enterprises have either established or are in the process of establishing themselves here. The pivotal advantage lies in being situated outside of China. Once established, these companies have the potential not only to upscale production for the Indian market but also to cater to neighbouring countries and potentially on a global scale.

The upcoming quarters hold promise for a substantial shift in the dynamics of manufacturing and industry participation in India.

Since you talked about the growth plans and future outlook of India, what about the pilot schemes? How do you see your local manufacturing growth with regards to the schemes of the government?

Since manufacturing is at the heart of who we are as a company, it is no surprise that we are passionate about the industry. When the Indian government introduced the PLI 1 scheme, we fully embraced it and successfully qualified for incentives after going through two assessments. Surprisingly, contrary to common concerns about delays, the government exhibited an impressive commitment. The scheme concluded on December 31, and by December 27 & 28, we received pressure from the Ministry of I.T. to prepare documents for payment submission. By March 31, the payment was made available to the ODMs. That goes on to explain the seriousness with which the government want to address and answer the concerns of the general public.

In PLI 1, the ODMs hit the required volumes, and we are excited about the news about PLI 2.0. What’s cool is that we’re actively involved, moving from 1.0 to 2.0. This shows the government is seriously listening to industry feedback. Now, we are waiting for the announcement of the ODMS that will qualify for 2.0, which is expected soon.

Could you please elaborate about Acer’s significant efforts in sustainability and ecologically friendly practices, including the specific strategies used?

ESG has become a focal point in our corporate agenda, with the chairman actively addressing various aspects associated with it. Firstly, we are committed to reducing our overall usage and carbon footprint. So two years ago, we introduced a varied series of products in which we used the material made from scraps.

Second, we are scrutinising our supply chain to ensure that our suppliers support these environmental goals. We have set challenging targets to consistently reduce their carbon impact to keep them as our suppliers.

Lastly, we believe in engaging our employees at an individual level. Through a dedicated app, we conduct global competitions among employees, encouraging them to contribute to sustainability efforts both in the office and beyond. Weekly contests prompt participants to track actions like turning off lights and quantify their impact. Recognition is given to those individuals who exhibit exemplary efforts towards our collective goal at the end of each week.

With the rapid evolution of trends and technology, how do you ensure that your company stays abreast of the latest technological advancements and industry trends?

As far as the technology portion is concerned, you have to be ready to look at products which are about a year and a half ahead because when we look at the technology, then you have an operating system side, and you have the processor side. So these are the set of companies that will always be looking at what future technology they’re going to work on.

While they provide a portion of it, these companies require someone to assemble the product. Acer has consistently been at the forefront, blending cutting-edge technology with affordability, a commitment we have upheld since our inception in 1976.

We consistently observe this pattern. Most of the time, companies join forces with Acer to explore assembling future technologies into a product, ensuring that we stay ahead in production by six months to a year. This ongoing collaboration characterises the continuous evolution of our ecosystem.