Livemint: October 30, 2015
New Delhi: Videocon Industries Ltd on Thursday said it plans to set up mobile handset assembly plant in Punjab, entailing an investment of Rs.500 crore over three years.
The company will assemble mobile handsets along with the manufacturing of set top boxes, said Anirudh Dhoot director of Videocon. The company expects this move to create an employment opportunity for 3,000 people.
Earlier this month, the company tied up with Coolpad Group Ltd to manufacture phones for the Chinese telecommunications equipment company. Videocon aims to manufacture about half a million Coolpad devices at its facility in Maharashtra.
Videocon is one of the few Indian manufacturers that are setting up mobile phone assembly units in India. Earlier this year in July, Karbonn Mobile India Pvt. Ltd set up a mobile assembly plant in Noida in partnership with Water World Technology Co., a mobile phone designer, manufacturer and supplier firm with an investment of Rs.150 crore. In September, Lava International Ltd, which has an assembly unit in Noida, said it will invest Rs.2,615 crore over the next seven years to set up one more factory in the country by 2017.
While Coolpad partnered with Videocon for manufacturing smartphones in the country, majority of the smartphone brands entering India have tied up with global contract manufacturers like Foxconn Technology Co. Ltd and Flextronics International Ltd. Earlier this month, Taiwanese technology company ASUSTeK Computer Inc. partnered Foxconn Technology Co. Ltd to begin local manufacturing of smartphones at Sri City in Andhra Pradesh.
In August, China’s Lenovo Group Ltd started assembling smartphones in its 40,000 sq. ft facility in Chennai run by Singapore-based contract manufacturer Flextronics International Ltd. Smartphone brands Xiaomi Corp., InFocus and Oneplus have also partnered with Foxconn, which plans to invest $5 billion to set up manufacturing units in Maharashtra over the next five years.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.