Xiaomi to set up 3 manufacturing units in India

Published on April 9, 2018

Chinese technology giant Xiaomi is reportedly planning on expanding its manufacturing field. According to numerous recent reports, the company desires to strengthen its market position in the market. In a similar effort, the firm will be establishing three new smartphone manufacturing plants in India. According to a report published by Android Headlines, the company already assembles its flagship smartphones in the Indian market. The latest factories are reportedly being aimed at boosting the production of smartphones components. The firm reportedly already has the Printed Circuit Board Assembly (PCBA) in place in the Indian market. Xiaomi made the surprising announcement at the Supplier Investment Summit which took place in New Delhi, India. The event reportedly went on to witness attendees by major Xiaomi component suppliers. The suppliers were provided invitations so that they are aware of Xiaomi’s latest movie. The company is working toward making provisions of increasing growth opportunities in the country.


According to a report by Android Headlines, if all of Xiaomi’s suppliers decide to come on board, the Chinese technology giant will be able to bring in a lot more investment than they anticipate. A growing number of reports state that the Chinese smartphone manufacturer is aiming toward scouring an investment of at least 15,000 crore rupees, i.e., around $2.5 billion. The company will also be creating 50,000 new jobs in the Indian market. The company will soon be able to add a total of six new smartphone manufacturing plants in India. The figure will reach that stage after the latest manufacturing factories are established in India. As per reports, the manufacturing units in India will reportedly be spread across three different states.

The list will include Uttar Pradesh, Tamil Nadu and Andhra Pradesh. “One of the company’s plants making power banks have already started assembling smartphones, while new manufacturing unit dedicated to PCBs will be set up in Sriperumbudur, Tamil Nadu,” the report by Android Headlines states. The unit that is set to arrive in Tamil Nadu will reportedly be the first of its kind to make use of the Surface Mount Technology or SMT. At the moment, the Chinese device developer can scour only roughly 10 percent of the smartphone value from the Indian markets.

After the three manufacturing units are set up in the market, the number will reportedly go up to 50 percent. The manufacturing plants must be in a fully functional state. Xiaomi’s primary objective is to achieve 100 percent localisation by the third quarter of 2018. All the three manufacturing units will be built in direct partnership with Foxconn. Reportedly, this move will mark the first time that Xiaomi is collaborating with Foxconn at setting up manufacturing units in the Indian market. According to the statement made by the company, Xiaomi says that its factories currently only employs about 10,000 individuals. Ninety-five percent of these 10,000 people are women employees.

Xiaomi had announced their plans earlier this year. The projects are launched as a part of India’s Make In India initiative. The program primarily requires boosting local manufacturing by providing numerous incentives to the Indian citizens. The announcement made by Xiaomi comes after the government made it official that they reserve the right to impose 10 percent import duty on numerous smartphone components. The Indian government carried the move out to encourage local manufacturing. Xiaomi is a major smartphone player in the Indian market. It would make sense for them to set up and further expand their reach within the country. Customers in India usually opt for Xiaomi smartphones.

Enjoyed this video?
"No Thanks. Please Close This Box!"