As a way of adding value to the domestic manufacturing of TVs, Indian television makers are acquiring key software licenses and are taking on Chinese companies who dominate the global market.

It’s believed that these licenses are essential for indigenous contract producers to transition from original equipment manufacturers (OEMs) to original design manufacturers (ODMs). Since the former is expected to be liable for producing pre-designed merchandise, the latter is expected to own the design. Afterall, Chinese producers in China, providing world’s largest electronics firms, began as OEMs many years in the past.

This week, Dixon Applied sciences, one of India's largest contract producers, proposed a pact with Google to accumulate the license for Android and Google TV platforms. Avneet Singh Marwah, chief govt of SPPL, mentioned it’ll begin supplying Google TV-based merchandise to extra manufacturers by this year-end. It already makes TVs beneath the Kodak and Thomson manufacturers, amongst others.

However, Dixon isn’t the first. Last year, Noida-based Videotex Worldwide Pvt. Ltd became the primary producer to acquire the license for LG’s webOS platform for TVs in India, whereas Tremendous Plastronics Pvt. Ltd (SPPL), which can also be based mostly in Noida, had acquired a license for Google TV again in 2020.

Till date, TV manufacturers had to cope with ODMs in China, who possess unique licences to platforms like Android. This made the Indian OEMs to pay the Chinese language ODMs for all key elements like open-cell shows, LED lights and cupboards. Firms like TCL, Skyworth and BoE Know-how Group are among the key Chinese language ODMs.

By developing into ODMs, the Indian companies are essentially looking to handle a larger portion of the manufacturing process.

To be sure, China has nearly threefold of India’s TV manufacturing capacity. However, geopolitical tensions and covid-related lockdowns have hit China’s capacity. An industry executive, requesting anonymity, estimated China’s capacity at 40 million smart TVs in 2021, which is expected to fall to 32 million this year, and may drop further to 28 million by December-end.

Building a presence in the design-led manufacturing sector has been among the key asks from industry veterans for a long time. While the government has offered a production linked incentive (PLI) scheme for various sectors,it has not been offered to TV makers.

In the words of Arjun Bajaj, director, Videotex, “When you have the license, then you’re sourcing everything yourself, using your own materials etc. Otherwise, you have to buy everything from them (the Chinese ODM). So, first you’re buying from an ODM in China, then paying me (the factory) and then reaching the customer”.