htc

HTC will start manufacturing its handsets in India and has entered into an agreement with Global Devices Network for it, reports ET Tech. The report mentions that Global Devices Network, which had set up a manufacturing and assembling unit three month ago in Noida already produces smartphones for Zen and is in talks with other device sellers as well.

The HTC devices made in India will be entry level, ranging in price between Rs 10,000 and Rs 25,000 and will be sold as the ‘Desire’ series. At least initially, the company will not be looking to manufacture its higher end smartphones like the ‘One’ series in India. The manufacturer will also set up its own quality control unit in the contracted plant for quality assurance.

Note that earlier this week, homegrown mobile phone maker Celkon opened its first manufacturing unit in the country, in Telangana. The company claimed that the unit has the capacity to manufacture 2 lakh phones per month, and that this would be increased to 5 lakh phones per month in the next quarter. The company mentioned that about 60% of the phones manufactured at this plant would be feature phones and the remaining 40% would be smartphones.

Last month, Taiwanese electronics contract manufacturing company Foxconn informed that it would start making Xiaomi phones in Andhra Pradesh, though it wasn’t clear when Foxconn would start making Xiaomi phones at this factory. This plant is expected to be a small scale unit with a capacity to manufacture about 10,000 phones a day. Apparently, Foxconn plans to set up 10-12 manufacturing units in India, and invest about $2 billion over the next five years.

Similarly, last month, Chinese smartphone maker OPPO revealed plans of setting up a handset manufacturing unit in India by August to primarily tend to the domestic market. The company also mentioned that some of devices manufactured here will also be exported to overseas markets. OPPO, which entered the Indian market early last year, claims to have sold over 400,000 devices in the country so far.

Mobile manufacturing in India

The Indian government has been encouraging domestic companies to start manufacturing electronics goods within the country instead of importing them and had approved a National Policy on Electronics. The National Manufacturing Competitiveness Council (NMCC) had also proposed the creation of a $1 billion fund to encourage telecom equipment manufacturing in India. The Cabinet had approved the setting up of two semiconductor wafer fabrication units at a cost of Rs 63,412 crore in India, in February last year. Since then, various smartphone manufacturers have said they will start manufacturing in India or have already started doing so.

– In April this year, Chinese handset maker Gionee said that it would set up a manufacturing facility in India  before 2018. The company claims it will invest Rs 300 crore to set up this plant, which will manufacture devices for India, the SAARC countries and Nigeria.

– In April last year, mobile phone manufacturer Micromax also started manufacturing devices in the country at its Rudrapur plant. Previously, the company imported devices from China where it had tie-ups with manufacturers such as Foxconn.

– In March this year, Samsung and Sony had announced plans for setting up manufacturing bases in India as a part of the Make in India initiative. Samsung reportedly would invest as much as $500 million to $1 billion in the manufacturing unit that will produce smartphones and tablets for the company.

– Earlier this year, Spice Group had said it would invest Rs 500 crores to set up a manufacturing unit in Uttar Pradesh. The company had also signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh for the same, as per which the UP Government will support Spice in establishing the facility by providing the necessary infrastructure, ecosystem and incentives under various schemes.