Gionee to setup a manufacturing unit in Faridabad

Mobile manufacturer Gionee has signed a MoU with the Haryana Government to set up a manufacturing unit in Faridabad with an initial investment of Rs 500 crore. The unit will be set up over an area of 50 acres, and is expected to employ 28,000 people in the next 3 years.

he facility will have a capacity of close to 30 million units and Gionee will manufacture around 6 lakh mobiles per month using the hub. The facility will also be used as an export hub in the future. Note that in April last year, the Chinese handset maker had said it planned to set up a manufacturing facility in India within the next three years.

Gionee had also tied up with Foxconn and Dixon last year, to manufacture phones in India. This would include manufacturing its F series and P series phones, feature phones and other smartphones. The company said that both Dixon and Foxconn put together have the capacity of producing over 1.2 million handsets every month. At the time, the company said it would invest $50 million in the next 3 years in manufacturing in the country.

Chinese manufacturers in India:

Chinese manufacturers like LeEco, Gionee, Xioami, etc. have captured the Indian smartphone market better in the recent past, as compared to domestic brands like Micromax, and Intex. Market research firm IDC said in a recent report that smartphone shipments from China based grew 28% q-o-q; shipments from these brands also grew 75% in CY Q2 2016. On the other hand, Indian and global vendor shipments declined year-over-year during Q2 2016. More here.

Manufacturing in India: The Indian government has been encouraging domestic companies to start manufacturing electronics goods within the country instead of importing them and hadapproved a National Policy on Electronics. Since then, various smartphone manufacturers have said they will start manufacturing in India or have already started doing so.

– Last month LeEco setup its first manufacturing facility in Noida with an investment of $5 million. The company claims that the 200,000 sq. feet facility will be capable of producing close to 60,000 phones per month.

– In April, Micromax inaugurated a manufacturing plant in Telangana, with an initial investment of Rs 100 crore, where it would manufacture mobile phones, LED TVs and other electronics products

– In the same month, Oppo said it would setup a manufacturing unit in Noida with an investment of Rs 100 crore.

– In November, Optiemus Infracom, the founder of the domestic mobile brand Zen Mobile, signed a joint venture with Wistron Corporation to set up a mobile manufacturing unit in Noida.

– Various manufacturers have tied up with Foxconn to manufacture phones in India. Earlier this month, Oppo started contract manufacturing in India in partnership with Foxconn while in September, Gionee tied up with Foxconn and Dixon to manufacture its phones in India. In June, the company started making Xiaomi phones in the country.

– The month before, Foxconn was in talks with Adani Enterprises to form a joint venture (JV), likely to make iPhones in India. The company had first reported in June that it could possibly set up base in India to manufacture iPhones, iPads and iPods for Indian and international sales.

– In August, Lenovo started the local production of smartphones with Flextronics under a contract manufacturing deal at its Sriperumbudur plant.

– Videocon Mobile Phones, Videocon Group’s mobile company, started manufacturing mobile phones in the country.

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