• Saturday, July 13, 2024

Business

China’s Xiaomi under ‘Make in India’ push as supplier to open smartphone plant near Delhi

Dixon Technologies India will invest over Rs 400 crore over a period of three years in the factory which is spread over a massive 300,000 square feet.

(Photo by GREG BAKER/AFP via Getty Images)

By: Shubham Ghosh

DIXON Technologies India, supplier of China’s Xiaomi Inc., is set to open a big factory on the outskirts of national capital New Delhi, Bloomberg reported on Friday (15).

According to the report, Dixon will invest over Rs 400 crore (£38.8 million) over a period of three years in the factory which is spread over a massive 300,000 square feet and will largely manufacture Xiaomi smartphones.

The plant, which will be inaugurated by an Indian government official towards the end of September, and the plan signify that India is pressing Chinese firms to localise everything — from manufacturing to distribution — of devices to promote its ‘Make in India’ initiative.

Xiaomi has been forced to partner with Dixon for smartphone assembly and the push for localisation would mean excluding the Chinese companies older suppliers in India — Taiwanese Foxconn Technology Group’s Bharat FIH and China’s DBG Technology Co.

Earlier in 2023, Xiaomi inked a deal with India’s Optiemus Electronics Ltd. in the northern state of Uttar Pradesh to make Bluetooth neckband earphones. Earlier, similar products were imported from China, a country which India is also aiming to challenge in the global supply chain.

Xiaomi joined hands with Dixon Technologies (India) Ltd, a contract manufacturing company, in June to make and export phones for the Chinese company. India’s minister of state for information technology Rajeev Chandrasekhar had remarked that the Chinese firm told the Narendra Modi government about the plan for Dixon to assemble and export its smartphones.

The south Asian country is the world’s second-biggest market for smartphones and some of the world’s biggest phone brands, such as Apple Inc. are eyeing it. Companies such as Xiaomi are looking to make a gradual recovery in the Indian market by offering affordable locally made 5G smartphones. The Chinese company was once an unmatched leader in India’s smartphone market but heightened regulatory scrutiny and stiff competition hurt it.

In March, Xiaomi India president Muralikrishnan B. told Reuters that the company has plans to set up more stores beyond its current network of 20,000 retail partners and facilitate local procurement of mobile phone parts, in an effort to slash costs.

In a recent interview, he also said that Xiaomi wants to increase sourcing from India.

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