Anirudh RegidiMar 08, 2021 21:10:53 IST
Five years after Xiaomi joined the Make in India initiative, the company has announced further efforts to strengthen it commitment in India. Xiaomi has partnered with contract manufacturers BYD, DBG for smartphones and Radiant for manufacturing smart TVs in India. Xiaomi says that its partnership with DBG will increase its smartphone manufacturing capacity by 20 percent; the capacity will "further increase" with the setup at BYD.
At a virtual briefing, Xiaomi India Managing Director Manu Kumar Jain said that the DBG unit in Haryana is already operation and the BYD unit in Tamil Nadu will be operational soon.
Currently, Xiaomi has 5 campuses in India, where its partners Foxconn and Flex assemble phones in Tamil Nadu and Andhra Pradesh. Jain says 99 percent of its smartphones are made in India now. The one percent constitutes of the devices available during first sales that are imported from manufacturers outside India.
"There was a need to expand capacity given the huge increase in demand for smartphones on account of work and study from home and high content consumption, and this ramp up in capacity will help in meeting that demand," said Jain.
Jain says about 75 percent of the value of the phones are now locally sourced as components like PCBA, sub-boards, camera modules, back panels, wires and chargers are made in India. Powerbanks are also locally manufactured.
These components are being manufactured by partners such as Sunny India, NVT, Salcomp, LY Tech, Sunvoda and others.
With all of this going live, Xiaomi has generated employment for about 30,000 people in the manufacturing facilities for smartphones and about 1,000 people for manufacturing units in smart TVs, Jain said.
Meanwhile, as of January 2021, Xiaomi's smart TVs are 100 percent manufactured in India. Manu Kumar Jain also said that since launching its first smart TV in India, the company has sold three million made in India TVs in the country.
India saw smartphone shipment at over 150 million units in the pandemic-hit 2020. The smartphone market grew 19 per cent year-on-year in December 2020 quarter with Xiaomi (including POCO) at numero uno position with 26 per cent market share during the quarter.
Samsung ranked second (21 percent), followed by Vivo (16 percent), Realme (13 percent) and Oppo (10 percent) in the fourth quarter of 2020, according to Counterpoint data.
Jain said the smartphone market is expected to continue its growth trajectory and could see shipment of 160-165 million units this year.
Talking about TVs, Jain said the company is already working with Dixon for making its TVs in India.
"We have already sold 3 million Made in India TVs. Like smartphones, we saw demand for TVs also going up significantly as people were at home and wanted to watch OTT content," he said.
The partnership with Radiant will help further expand that capacity, he added.
"From an India growth perspective, we would want to continue investing for the long-term and manufacture not only smartphones and TVs but also components," Jain said.
The government had announced a PLI scheme that extended incentive of 4 to 6 percent on incremental sales (over the base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years subsequent to the base year (2019-20).
The government had cleared proposals from domestic and international companies - including iPhone maker Apple''s contract manufacturers Foxconn Hon Hai, Wistron and Pegatron, apart from Samsung and Rising Star - entailing an investment of Rs 11,000 crore under the PLI scheme to manufacture mobile phones worth Rs 10.5 lakh crore over the next five years.
On Wednesday, the government approved a Rs 7,350-crore PLI scheme to boost production of laptops, tablets, all-in-one PCs and servers in the country, a move that would nudge global and domestic players to manufacture these products in India.
Jain lauded the government for its schemes to bolster manufacturing in India, and said that some of its contract manufacturing partners have received approvals from the government under the PLI scheme. Xiaomi India COO Muralikrishnan B said local manufacturing has been a journey and as demand for other categories like laptops and robocleaners scales up, a call would be taken on whether they can be made locally as well.
He added that the demand in India has grown significantly amid the pandemic and the company would look at meeting the domestic demand before it starts exporting on a large scale. The company exports a small number of smartphones to markets like Nepal and Bangladesh.
With inputs from Press Trust of India
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