Xiaomi Announces Three New Smartphone Manufacturing Plants In India!
This is Xiaomi's first Supplier Investment Summit in the country, and it is seeking to educate the participating component suppliers about the manufacturing ecosystem in India.
Xiaomi has a robust expansion program in India and is planning to go big in the country. Soon after the commencement of its first Supplier Investment Summit in India today, the Chinese manufacturer announced three new smartphone manufacturing plants in India.
The ongoing Supplier Summit has attendance from over 50 smartphone component suppliers from around the world. Xiaomi India announced three new smartphone manufacturing plants in the country, with their first Surface Mount Technology (SMT) plant. The SMT plant will manufacture Printed Circuit Board Assembly (PCBA) units in collaboration with Foxconn.
Xiaomi Supplier Investment Summit India
This is the first Supplier Investment Summit for Xiaomi in the country, and the Chinese company is seeking to educate the participating component suppliers from around the world about the manufacturing ecosystem in India. Xiaomi India aims to enlist the help of these suppliers in setting up manufacturing units in the country.
Recently the government imposed an added 10 percent tax on import of smartphone components to boost local manufacturing. The three-day investment summit by Xiaomi India aims to set up more local manufacturing units in the country.
More Investment & Employment Opportunities
Xiaomi also added, if the foreign suppliers agree to set up their units in the country, it will create thousands of jobs. New setups from suppliers could potentially bring in an added investment of over 15,000 crores ($2.5 billion) in the country.
If the suppliers can successfully set up their base in India, they will create over 50,000 job opportunities here.
The three new Xiaomi smartphone plants will operate in collaboration with Foxconn and are located across the campus in Sri City, Andhra Pradesh. The Surface Mount Technology (SMT) campus has been added to a new campus in Tamil Nadu.
Xiaomi will also become the first smartphone company in India to start local assembly of printed circuit board assembly (PCBA) units.
These factories will be operated by electronics contract manufacturing firm Foxconn. Each unit now employs over 10,000 human resources, more than 95 percent of which are women. All of the assembly work is done by women.
Local Production & More Availability
The new units will help to increase production to meet the growing market demand. The new units have a capacity to produce two smartphones per second during operational hours. PCBA being the primary component of a smartphone, the local assembling of PCBA will boost up the overall production.
Currently, Xiaomi has a 57 percent market share online and stands at number two spot in the offline space with an 11.2 percent market share.
Xiaomi India To Invest in ZestMoney
ZestMoney is an Indian EMI digital firm which offers digital EMIs without a credit card or a credit score. Back in October 2017, Xiaomi India partnered with ZestMoney to offer cardless EMI on Xiaomi phones.
Fast forward to 2018, recently Xiaomi announced that it will invest around 6000 to 7000 crore in Indian startups. Now the Chinese company is looking to pick up a major stake in the digital lending company, and ZestMoney is in advanced talks with Xiaomi to raise a total round of about $20 million.
The investment will see a closer integration between the two companies on Mi.com, to push sales. Xiaomi is looking to build an ecosystem for its products in India, and ZestMoney will help the company to boost the sales.
In the past, Xiaomi India had invested in Hungama Digital Media Entertainment for a local content partnership and backed student-focused lending player Krazybee.