Trainees at work

India Mobile phone accessories company establishes environmental and social standards with suppliers

Asia
DEG
Classic

India's electronics industry is growing rapidly, but companies are not always able to fully exploit its potential due to a lack of qualified workers among producers and suppliers. As part of the develoPPP programme funded by the German Federal Ministry for Economic Cooperation and Development (Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung, BMZ), Salcomp Manufacturing India Pvt Ltd (Salcomp), a mobile phone accessories company, and DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH therefore initiated a qualification offensive. In addition to training qualified technical staff, the aim was to promote the dissemination of international standards on quality, environment, health and safety (QEHS) in the mobile phone industry. Salcomp thus also strengthened the competitiveness of its Indian suppliers and thus its own position on the world market.

India's electronics market is booming and global demand for Indian electronics products is increasing. At the same time, the sector is facing major challenges due to a lack of qualified workers. Suppliers and equipment manufacturers currently must spend a lot of time training new personnel for manufacturing, resulting in significant production backlogs. In addition, QEHS practices in local companies do not meet international standards. Among other things, this has led to higher error rates in production at Salcomp suppliers, weakening the company's productivity. With its initiative to improve standards at suppliers, Salcomp is leading the way, strengthening the industry as a whole. With the initiative, Salcomp can increase the productivity of its Indian suppliers and better exploit the potential that the market offers.

In order to establish international QEHS standards in the supply chain and create more qualified jobs, project partners have implemented the following measures, among others, between 2018 and 2019 with a total project volume of around 350,000 euros: 

  • Development of a training program on QEHS guidance for 10 selected suppliers.  

  • QEHS training for selected skilled workers in cooperation with Elektronik Bhaktavatsalam Polytechnic College (BPTC). 

  • Training course for electronics and machine maintenance for unskilled youth, based on the German model of dual education in cooperation with BPTC. 

When industry, development cooperation and financiers work together on sustainable development, it's clearly a turnaround toward success.
Sasikumar Gendham, Managing Director bei Salcomp Manufacturing India Pvt Ltd
Specialist training by Salcomp in India
Through the project with develoPPP, Salcomp was able to improve the training of specialists and anchor it for the long term. Photo: Salcomp Manufacturing India Private Limited
Young people in training at work
The training course was completed by a large number of young people, one third of whom were female. Photo: Salcomp Manufacturing India Private Limited

The initiative made it possible to train employees and establish international standards for quality, the environment, health and safety at the suppliers and to certify them accordingly. A large proportion of the young people trained found employment in supplier companies. Salcomp benefited from the reduced error rate in production and the higher productivity of its suppliers, which made its own products more competitive. 

  • 122 qualified jobs created 

  • 178 young people, including 59 females, completed a one-month training course 

  • Certification for suppliers according to ISO standards, QEHS training programme for skilled workers 

Development successes

Certification according to ISO standards and establishment of QEHS standards

Qualification of young people without training

Business successes

Lower error rates through qualification of suppliers

Strengthening competitiveness through certification and establishment of QEHS standards

develoPPP Classic

develoPPP Classic is aimed at medium-sized and large companies that want to invest sustainably in a developing or emerging country and expand their operational activities locally. Suitable projects receive technical and financial support of up to two million euros in public funding.

Salcomp Manufacturing India Pvt Ltd

Salcomp develops and manufactures components for powering mobile and other electronic devices, primarily chargers for smartphones. The company employs around 12,000 people at its headquarters in Salo, Finland, and at production sites worldwide.

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH

The KFW subsidiary specializes in the complex financing arrangements in developing and emerging markets and has extensive expertise in long-term investment financing. DEG finances and supports manufacturing companies, agribusinesses and companies in the infrastructure and financial sectors.

Sasikumar Gendham Managing Director Salcomp Manufacturing India Pvt Ltd
Daniel Thomann Head of Programme DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH