Almost Every IT, Telecom Player Is Now 'Making in India'

by CXOtoday News Desk    Aug 07, 2015


The ‘Make In India’ magic is happening and is likely to accelerate in the coming months. There’s a huge trigger from IT and telecom companies. Be it domestic players or global ICT giants, everyone is now looking at investing in India. Make In India aims to promote country as a global manufacturing hub. 

The most recent drive comes from Japanese consumer electronics major Sony, which will start making 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 as Revenue Secretary Shaktikanta Das said in a tweet that the “budget boosters” are silently working and ‘Make in India’ is taking shape.

Sony entered into an agreement to manufacture its Bravia line of televisions at Taiwanese contract manufacturer major Foxconn’s plant near Chennai. “We are also evaluating the possibility of making smartphones in the country and may eventually set up our own plant in India,” Sony India managing director Kenichiro Hibi said.

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. 

Gou, who met PM Modi this week said the company is “very interested” in many government programmes including Make in India, Skill India, Digital India and Clean India. Manufacturing giant Foxconn plans to invest up to $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. 

 Finance Minister Arun Jaitley in his 2015-16 Budget has announced a host of tax and non-tax initiatives to boost domestic manufacturing as part of the Make In India programme. 

Another competitor looking at the ‘Make In India’ prospect is Asus. The smartphone maker is now mulling manufacturing in India and has set up an internal team to study the prospects of domestic manufacturing. The Taiwanese firm, which currently has a share of about 2% in the Indian smartphone market, aims to raise it to 5% by 2016.

“India offers a huge opportunity, smartphone penetration is just about 10%. We are focusing on getting the entire supply chain right here and not just assembly. Once the supply chain is there, manufacturing will become easier here,” Asus chairman Jonney Shih told PTI.

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

Not only ICT players and telecom companies, ‘Make In India’ has also pushed global automakers to renew their focus in the country. The very recent example is General Motors, the world’s third-largest carmaker that announced an investment of $1 billion in the country including a major overhaul of its existing operations here.  “This is the beginning of a new GM in India. There will be many changes in the way we operate,” said Mary Barra, global CEO, General Motors said in a statement, as the company plans to launch 10 new models by 2020.