11. For disability on account of the“ high interest rate on |
case of local procurement. |
financing of working capital,” receivable and payable |
17. Clearing charges of 0.5 % of the assessable value and local |
durations are considered to be the same in India and other |
transportation of 0.5 % has been assumed in the case of |
low-cost manufacturing destinations( such as China). The |
imported goods. |
assumed interest rate is ~ 14 % in India and ~ 6 % in other low- cost manufacturing destinations( such as China). |
18. Local transportation of 0.05 % of the purchase price has been assumed in the case of domestic purchases. |
|
12. The base cost of BoM is assumed to be the same in India and other low cost manufacturing destinations( such as
China).
|
19. For the purpose of computation of design expenses per unit, the domestic manufacturer is assumed to be in the first few years of operation with a low scale of operations, |
13. Margins have been calculated at 5 % of the total cost |
to reflect the nascent stage of the industry. |
excluding local taxes( Cenvatable taxes). |
20. The cost structure represents that for a manufacturer who |
14. The cost of power in low-cost manufacturing destinations |
imports components, manufactures the product and sells it |
( such as China) is assumed to be 50 % of the blended cost |
to a trader, who issues a form C |
|
of power in India. Real estate costs in low-cost manufacturing destinations( such as China) are assumed to be 50 % of that in India. The costs of other factor input are assumed to be the same in both the countries.
15. In the case of export from other low-cost countries( such as
China), the extent of export-related incentives is comparable to taxes payable in the country and the margins of manufacturers.
16. Freight has been assumed to be 5 % in the case of sea freight for imported products / components and 2.5 % in the
|
21. In the case of imported and traded products, the traders will typically import their products to the destination state.
22. It is assumed that SAD refund is available and made use of by traders of imported products such as notebooks.
23. For the purpose of computation of design expenses, a design to market cycle of six months has been assumed for the current level of low value addition in India. The assumed interest rate in India is ~ 14 % and ~ 6 % in other low-cost manufacturing destinations( such as China).
|
S. No. |
Component |
Cost Proportion in Total BOM Cost in % |
1 |
CPU / Processor |
Cost |
2 |
Memory / RAM |
Proportion in |
3 |
Hard Disk / Storage Device |
Total BOM |
4 |
Motherboard |
Cost in % |
4.1 |
Chipset- Data processing / ASP |
|
4.2 |
Connector |
|
4.3 |
Printed Circuit Board |
4.4 |
Integrated Peripherals as Disk Controllers, WLAN Half Mini PCIe Module, graphic controllers, Camera, Key Board, Touchpad, Controllers for Audi and video, wireless networking, Trackpad. Peripheral card slots |
3 % |
|
5 6 7
8 9
10
|
Display / Monitor Optical Disc Drive CD / DVD-ROM Writer
External Connector-DC Power, Outputs, HDMI, USB, Flash Drive
Chasis
Other enclosure / mechanics & final assembly
Others included software, Warranty, etc
|
3 %
4 %
2 %
12 %
5 %
15 %
|