China-based mobile manufacturing company Xiaomi Corp. has encouraged its worldwide mobile phone part suppliers to take a look at investments in India, with a plan to set up a local component ecosystem in the nation.
The organization is facilitating 50-odd suppliers, which make parts, for example, touch boards, camera modules and LCD and LED boards for it, for a three-day tour to Uttar Pradesh and Andhra Pradesh to investigate investment oppurtunites.
If all the suppliers set up base in India, "we trust this could be the greatest ever investment into India....to the tune of Rs15,000 crore, and could make 50,000 extra occupations in India," Manu Jain, VP of Xiaomi Global and overseeing chief of Xiaomi India, said at the association's first historically speaking Supplier Investment Summit in New Delhi on Monday.
Xiaomi likewise reported setting up of its first surface mount technology plant for local manufacturing of printed circuit board (PCB) assembly units, at Sriperumbudur, Tamil Nadu, in partnership with Foxconn.
"We are beginning a SMT line for PCB get together... one of the key challenge that the Indian electronics industry faces is that the local value addition is around 10% of the business. PCB is the most essential segment of the telephone and records for half of the estimation of the telephone," Jain stated, including the organization points that by the following quarter, all of Xiaomi telephones assembled in India will have a privately produced PCB.
The declaration comes quickly after the government on 2 April forced a 10% basic custom duty on import of mobile phone components, for example, camera modules and PCB gatherings. Preceding this, there was no import obligation on these segments.
In addition, in the financial plan for 2018-19, the inside had increase customs duty on cell phones to 20% from 15%. The measures are in accordance with the goverment's Phased Manufacturing Program, which expects to boost local manufacturing of mobile phones.
In its first phase, the goverment had focused on production of various componets for three years—mechanics, die cut parts, microphones and receivers, keypads and USB cables in 2017-18; printed circuit boards, camera modules and connectors in 2018-19; and dispaly assemblies, touch boards, vibrator motors and ringers in 2019-20.
Korean handset producer Samsung is the only other major brand that assembles PCBs in India.
Aside from the PCB plant, Xiaomi on Monday also announced increase of its cell phone assembling facility with the addition of three more plants—two in Andhra Pradesh and one in Tamil Nadu in association with Foxconn. Xiaomi has also begun assembling cell phones at its Noida office in partnership with Hipad Technologies, which as of now manufactures power banks for Xiaomi. The organization did not share the investment figures for these new offices.
Xiaomi had set up its first mobile phone assembling unit in August 2015, followed by a second plant in March 2017 and the Noida office in September 2017.
