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Gionee ties with Foxconn & Dixon to manufacture phones in India


Chinese handset maker Gionee has tied up with Foxconn and Dixon to manufacture its F series & P series phones; feature phones and other smartphones respectively, for Gionee in India. Gionee will also be investing $50 million in the next 3 years on manufacturing in India. These phones will be manufactured out of Dixon and Foxconn’s Delhi NCR and Andhra Pradesh facilities respectively, starting next month.

Gionee says that both Dixon and Foxconn put together have the capacity of producing over 1.2 million handsets every month. The company will also pump investment into its R&D team in India, which will work on the software Gionee UI Amigo to customise it for Indian consumers.

India manufacturing facility
Interestingly, in April this year, the Chinese handset maker planned to set up a manufacturing facility in India within the next three years. The company claimed it would invest Rs 300 crore (~ $45 million) to set up this plant, which would manufacture devices for India, the SAARC countries and Nigeria. At that point, India was Gionee’s second largest market behind China, where it claims to have sold over 4 million devices last year. The company mentioned that it has earmarked a budget of Rs 225 crore (~ $34 million) for marketing and advertising in India over the next year.

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. Since then, various smartphone manufacturers have said they will start manufacturing in India or have already started doing so.

– Last month, Taiwan-based contract electronics manufacturer Foxconn was in talks with Adani Enterprises to form a joint venture (JV), likely to make the iconic Apple iPhones in India.

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– In the same month, Lenovo started the local production of smartphones with Flextronics under a contract manufacturing deal at its Sriperumbudur plant. As of now, the facility is making Lenovo-owned Motorola’s Moto E smartphones and will starting making the K3 Note smartphone soon.

Videocon Mobile Phones, Videocon Group’s mobile company, started manufacturing mobile phones in the country, before any other manufacturers or brands, the company claimed. Videocon says that its largest manufacturing base is in India and that it has launched the smartphone Z55 Dash, a handset which has been designed and manufactured in India.

– In June, homegrown mobile phone maker Celkon opened its first manufacturing unit in the country in Telangana. The company mentioned that about 60% of the phones manufactured at this plant would be feature phones and the remaining 40% would be smartphones.

– The same month, Taiwanese electronics contract manufacturing company Foxconn said that it would start making Xiaomi phones in Andhra Pradesh, although it’s not clear when Foxconn plans to start making Xiaomi phones at this factory.

– In May, 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 would also be exported to overseas markets.

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

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– In March, 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 would support Spice in establishing the facility by providing the necessary infrastructure, ecosystem and incentives under various schemes.

– In January, smartphone maker Samsung Electronics revealed that it had invested Rs 517 crore towards the expansion of its mobile phone plant in Noida, Uttar Pradesh, under the UP Mega Policy. Subsequently, the company reported that it would invest as much as $500 million to $1 billion in the manufacturing unit that will produce smartphones and tablets for the company.

– Sony too wants in on the action: at the MWC in Barcelona this year, Kenichiro Hibi, the head of Sony’s India operations, said that the company was planning to launch an Indian manufacturing unit ‘very soon’. He mentioned that while final decisions have not been made yet, the company would look to manufacture both flat-panel televisions and smartphones in the country.

– 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.

(With inputs from Shivangi Singh)

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Image Credit: Flickr user Kārlis Dambrāns

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