China’s Xiaomi Starts 'Making In India'

by CXOtoday News Desk    Aug 10, 2015

xiaomi

In recent months, several leading Chinese and Indian mobile brands have started local manufacturing of their phones. Chinese smartphone player Xiaomi today launched the first Made-in-India Redmi 2 Prime smartphone. It has started manufacturing devices locally in India, in a show of commitment to PM Narendra Modi’s ‘Make in India’ initiative that aims to promote country as a global manufacturing hub. 

Xiaomi has partnered with Foxconn Technology Group to manufacture its smartphones in the country, with its factory being based in Andhra Pradesh. Foxconn has already started producing Redmi 2 Prime at the unit, and 100% of the Redmi 2 Prime units sold in India are made in India.

Xiaomi entered India in July 2014. Its unique and innovative direct-to-consumer business model has been instrumental in disrupting the Indian smartphone industry. By manufacturing its smartphones in India, Xiaomi is extending its long-term commitment to the Indian market.

Experts believe investments like these set an example for more international players to join the ‘Make in India’ program and will play a key role in transforming India into a global manufacturing hub.

The Redmi 2 Prime is an enhanced version of Redmi 2 with 2GB RAM and 16GB Flash, which will be available for Rs. 6,999 on Mi.com and other partner sites (Flipkart, Amazon, and Snapdeal) starting August 10. 

Hugo Barra, Vice President, Xiaomi Global, said: “Manufacturing smartphones locally is a significant step towards incorporating Xiaomi into the fabric of India in the years to come. After taking into consideration several factors, manufacturing in Andhra Pradesh was an obvious choice for us.”

Not only Xiaomi, today every leading ICT player is looking at investing in India. Another recent drive comes from Japanese consumer electronics major Sony, which will also make its popular Bravia television sets in India. Sony’s comeback to India manufacturing after more than a decade both Android and LCD televisions was cheered by industry bodies and the government.

Revenue Secretary Shaktikanta Das said in a tweet that the “budget boosters” are silently working and ‘Make in India’ is taking shape.

Sony too entered into an agreement to manufacture its Bravia line of televisions at Taiwanese contract manufacturer major Foxconn’s plant near Chennai. Meanwhile, Foxconn plans to make long-term investments in India and is in discussions with the Gujarat-based Adani Group, Micromax and other domestic firms to establish manufacturing plants in the country.

“We are very encouraged to invest in India,” said Foxconn chairman and CEO Terry Gou, who is on an India visit for the second time in less than two months. He met the PM and is now announced its investment plans of $2 billion to set up 10-12 units for electronic products by 2020.

Recently, Motorola, InFocus and OnePlus introduced their latest devices globally from India. Smartphone makers such as Xiaomi and Gionee are already considering manufacturing in India.

More than seven brands entered the India handset market in the three months ended June, including Coolpad’s Dazen, Meizu, ZTE’s Nubia and PhiComm, offering devices in the most affordable range with 4G capability  across India. At the same time, domestic handset makers like Micromax, Karbonn and Lava are also in the process of ramping up manufacturing in the country. 

As the government is pushing its ‘Make in India’ initiative. With India bring one of the fastest growing smartphone markets globally, with research firm CMR stating, 19.5 million smartphones were shipped in India in the March 2015 quarter.