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Xiaomi Bets Big On India

Xiaomi has entered into active negotiations with two more component partners to set up manufacturing units to boost its growing operations in India. It may be noted that the Chinese firm has emerged as the biggest smartphone seller in India.

Manu Kumar Jain, vice president at Xiaomi Global and managing director at Xiaomi India, told: “We have two other partners who are in active discussions with us for multiple components and nothing is finalized yet.”

The financial daily highlighted that local sourcing of components will give an option to the consumer electronics company to slash the prices of its products in India as well as cutting go-to-market time. Xiaomi has been making serious efforts to bring its entire component ecosystem partners to India.

It is worth mentioning here that the Chinese smartphone giant had earlier this year shifted over 50 of its supply chain partners from China and Taiwan to India to look up at investments in India, with an aim to set up local factories.

These component suppliers went to Andhra Pradesh and Uttar Pradesh to explore investment opportunities. Xiaomi had then said that these suppliers could pump Rs 15,000 crore into India over the next few years and could create 50,000 jobs.

Xiaomi’s domestic manufacturing plans get a much-needed impetus as one of its key components suppliers, Holitech, is in process to build a new upcoming 75 acre facility in Tirupati, Andhra Pradesh with an investment USD 200 million (Rs 1400 crore) in next three years to locally produce camera module, touch screen panel, TFT (thin film transistor), flexible printed circuit and fingerprint module exclusively for Xiaomi.

“We are investing in a lot of startups. This is a key focus area for us. We continue to invest in a large number of startups. I am personally spending a lot of time on this at least one day in a week or a fortnight meeting just spent on meeting a large number of startups,” Jain told.

In August 2015, Xiaomi had set up its first phone assembly unit. At present, the Chinese handset maker has six manufacturing facilities for smartphones and one unit for power banks spread across Andhra Pradesh, Tamil Nadu and Noida.― Times Now

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