[Updated] Xiaomi Opens Local Manufacturing Unit in Sri City, AP. Redmi 2 Prime Will First “Made In India” Phone

[Update: As we had expected, Xiaomi has made the announcement that they have partnered with Foxconn Technology Group to manufacture its smartphones in India. The factory is based in Sri City, Andhra Pradesh. See the entire press release at the end of the article. ]

Xiaomi or Mi as it is called in India has made a splash in India since it’s arrival early last year. They have launched some great value for money phones that include Redmi 1S, Redmi Note, Redmi 2, Mi 3, Mi 4, Mi 4i and Mi Band. Even their mobile accessories have been quite popular with users. In fact, within first six months of their launch in India, they managed to sell over one million handsets. They are currently 7^th largest mobile handset seller in India ahead of Lenovo and Karbonn. While Motorola started the online flash sales concept in India with their Moto G model, it was Xiaomi who have reaped rich benefits out of these single-day online flash sales.

Now, Xiaomi plans to make their India connection even stronger. While, there is no official announcement, Hugo Barra, on his Facebook timeline has put up a some cryptic updates, that points to the fact that something big is coming to the port city of Vishakhapatnam. In the first update in this regards, he mentions, “GOOD MORNING VIZAG! This is what you see as you walk out of the Visakhapatnam airport arrival terminal this weekend. We’re about to take a huge step forward here in India! Can you take a guess?”

Now, when Hugo Barra says they are going to take huge step forward in India, it has to mean something. This was put up on Sunday morning.

To reaffirm that something big is coming up, earlier today he put up another update – again reiterating that “this is the biggest day for Mi India since we arrived in July 2014”. Check out this update.

So, can you guess what is it going to be?

Xiaomi Mi Manufacturing Facility in India?

If we had to guess, it would be that Xiaomi will announce their local manufacturing in India in the city of Vishakhapatnam. Given that everywhere they are saying “Mi Welcomes You to Vishakhapatnam” means they definitely are setting up something in this city. We will wait and see what it is.

And if it is not manufacturing facility, then it may be announcement of Redmi 2 Prime which may have a tag “Made in India”. It may also be that Mi TV, which is widely expected to be launched in India this year, may be landing in port city of Vishakhapatnam.

What ever the reason might be, we are quite anxious to know. We will keep you posted as and when we get further updates.

[Updated]

Press Release from Xiaomi

Leading smartphone company Xiaomi announced today that it will now manufacture its devices locally in India, in a show of commitment to Honourable Prime Minister Shri Narendra Modi’s ‘Make in India’ initiative. 

Xiaomi revealed its ‘Make in India’ plans at a special event today in Visakhapatnam, located in the state of Andhra Pradesh, in the presence of Honourable Chief Minister Shri Nara Chandrababu Naidu and Mr. Amitabh Kant, Secretary, Department of Industrial Policy and Promotion (DIPP).

‘Make in India’ was launched by Shri Narendra Modi in September 2014 as a major national programme designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build best-in-class manufacturing infrastructure.

Xiaomi entered India just before then, in July 2014. Its unique and innovative direct-to-consumer business model has been instrumental in disrupting the Indian smartphone industry. By manufacturing its smartphones in India, Xiaomi is extending its long-term commitment to the Indian market. Investments like these set an example for more international players to join the ‘Make in India’ programme and will play a key role in transforming India into a global manufacturing hub.

Xiaomi has partnered with Foxconn Technology Group to manufacture its smartphones in India. The factory is based in Sri City, Andhra Pradesh. The choice of location is strategic as Andhra Pradesh is known to have highly skilled technical manpower, an enterprising population and a dynamic emerging leadership – a combination of factors that make the state appealing to high-growth technological companies such as Xiaomi.

The first Mi phone to be manufactured in India is Redmi 2 Prime, an enhanced version of Redmi 2 with 2GB RAM and 16GB Flash, which will be available for Rs. 6,999 on Mi.com and other partner sites (Flipkart, Amazon, and Snapdeal) starting August 10. Redmi 2 Prime features a Qualcomm Snapdragon 410 64-bit processor, 4G Dual SIM support, and a 4.7″ HD display. With the memory upgrade, Redmi 2 Prime offers an even smoother user experience and more space for apps and media.

Foxconn has already started producing Redmi 2 Prime at their Sri City factory, and 100% of the Redmi 2 Prime units sold in India are made in India.

Hugo Barra, Vice President, Xiaomi Global said: “Manufacturing smartphones locally is a significant step towards incorporating Xiaomi into the fabric of India in the years to come. Thanks to Prime Minister Shri Narendra Modi’s visionary plan to transform India into an attractive destination for manufacturing, we have a great opportunity to make our products in India, bringing us even closer to Indian consumers and contributing to India’s evolution in the technology sector. After taking into consideration several factors, manufacturing in Andhra Pradesh was an obvious choice for us. This has been possible due to the support of Chief Minister Shri Nara Chandrababu Naidu and his forward thinking policies, as well as Mr. Ashok K Kantha, the Ambassador of India to China, who played a key role in helping us to forge links with Andhra Pradesh.”

Manu Jain, Head of India Operations, Xiaomi, said: “We started looking at options for local manufacturing as soon as Xiaomi entered India in July last year. Being a key driver of ‘Make in India’, DIPP Secretary Mr. Amitabh Kant has been a strong supporter of Xiaomi right from the start, and has played an important role in turning our local manufacturing plans into reality. Local manufacturing shows Xiaomi’s commitment to being in India for the long haul, and we are also able to contribute to generating more jobs in India. We are truly excited to be playing a role in enhancing the quality of life of the people of India.”

Honourable Chief Minister of Andhra Pradesh, Shri Nara Chandrababu Naidu said: “We have great faith in young leaders and young companies like Xiaomi. These new generation companies and entrepreneurs will be key to the success of Andhra Pradesh and India. We are happy to partner with Xiaomi as they set up their first manufacturing unit in India, as part of the Make in India program. We believe this partnership will provide new opportunities to youth of the state and develop an electronics manufacturing ecosystem of global standards in Andhra Pradesh. We welcome Xiaomi to Sunrise Andhra Pradesh and India.”