D-Link is apparently considering outsourcing production of its network products to India. The company is looking into plans to start production in the region for products that are sold within the country.
The move arrives to also take advantage of the nation’s PLO (Production-Linked Incentives) scheme that will benefit the company and the local OEMs as well. Notably, this arrives amid the rising tensions between India and China. Although, D-Link president Mark Chen believes that localized production is a primary alternative for companies that are planning on dispersing their global supply chains, as per a DigiTimes report.
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At the moment, D-Link already has a subsidiary in India and will shift production to that unit. Most of the company’s production is still takes place within China, out of which, 10 percent of its total sales is accounted by the shipments to North Amerca. The senior official further added that the company is also intending on boosting its sales in that region, especially in the US.
Thus, it is now looking for an alternative region to start production outside of China, to avoid issues amid the ongoing trade tensions amid the US and China. D-Link also recently reported on its net profits reaching 10.62 million US Dollars, with its earnings per share also reaching the highest in its past 27 quarters. Unfortunately, finer details regarding these plans or possible production sites are currently unknown, so stay tuned for more updates.
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