BackGionee to invest $50 million to make handsets in India
The company has partnered global manufacturers Foxconn and Dixon to begin production in India
Premium
New Delhi: Chinese smartphone vendor Gionee on Friday said it had tied up with Taiwan-based Foxconn Technology Group and Dixon Technologies (India) Pvt. Ltd to start manufacturing mobile devices in India.
It plans to invest $50 million (Rs330 crore) over the next three years.
“India market is second home market to Gionee after China and the investment in India manufacturing is just another step in a line up of much more to come for the Indian market and customers," William Lu, president of Gionee, said in a statement.
The Chinese firm has become the latest addition to the growing number of smartphone companies that are setting up factories in the country.
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. The same month, China’s Meizu Technology Co. Ltd, in which e-commerce giant Alibaba Group Holding Ltd is a minority stakeholder, entered the Indian market and said it plans to make handsets in the country. The company is in talks with Foxconn.
In July, Karbonn Mobile India Pvt. Ltd set up a 150,000 sq. ft plant with an investment of Rs50 crore in Noida in partnership with mobile phone designer, manufacturer and supplier Water World Technology Co. Smartphone brands Xiaomi Corp., InFocus and Oneplus have also partnered with Foxconn to manufacture devices in the country.
Foxconn in August announced a $5 billion investment to set up manufacturing units in Maharashtra over the next five years. Lava International Ltd, which has an assembly unit in Noida, said it will invest Rs2,615 crore over the next seven years to set up one more factory in the country by 2017.
Both the firms will start the production in October and will have a capacity of more than 1.2 million handset per month between them, the company said.
To begin with, Foxconn will start its Indian association with Gionee by manufacturing the F Series and P Series phones from the company’s existing portfolio while Dixon will be making feature phones and other smartphones for the Chinese mobile-phone vendor in India
Gionee is also looking to increase its investment in the research and development team in India to strengthen its software capabilities so as to bring a better consumer experience on its user interface Amigo by customizing it for Indian consumers.
“Make in India as an initiative gives an opportunity to not only take Gionee as brand ahead but also to be actively able to participate in the growth of our economy through various touch points.," said Arvind.R.Vohra, country CEO & MD, Gionee India.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
