Chinese handset maker Gionee to invest Rs 300 crore to set up manufacturing unit in India

Hyderabad: Chinese mobile phone maker Gionee plans to invest $50 million (about Rs 300 crore) in the next two-three years to set up a plant in India that it wants to use for exporting devices to South Asian and African countries.

"We aim to make India a manufacturing hub outside China to cater to demand in African and Saarc countries, including Pakistan, Bangladesh, Sri Lanka and Nepal," Gionee's president William Lu told ET. He added that the company will invest in setting up a research and development centre and local servers along with establishing manufacturing capability in India, the company's biggest market after China.

Gionee has appointed professional services firm EY to advise it on setting up a manufacturing facility. The company is looking at both contract manufacturing and acquiring an existing unit in the country, said Arvind Vohra, country CEO and manager ing director of Gionee India, who owns 26% in the Indian arm. The handset maker will generate funds internally for expansion plans, he added.

Vohra said the company is targeting a turnover of Rs 6,000 crore in the current fiscal. In order to achieve this, the company plans to invest Rs 225 crore on marketing this year. It will also expand its retail network with 120 exclusive experience stores, up from the current 12 in the country.

Lu said that the company will launch about a dozen smartphones this year, with a majority of devices supporting 4G LTE technology.

The company is also looking at leveraging the online sales channel in the country to increase sales further.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.