Micromax’s co-founder, Rahul Sharma, says that the shift of production to India makes sense due to the rising cost of Chinese labour
Micromax plans to manufacture all of its phones in India by 2018, according to co-founder Rahul Sharma. With this move, Micromax aims to consolidate its manufacturing and assembly expenses, that it presently incurs while making its devices in China. This move is a result of the rising labour and component supply chain investments in China.
In an interview to Reuters, Sharma said, “In the next 24 months 100 per cent will be here. There was no ecosystem in India. Slowly, slowly we are attracting one. In terms of manpower, India is far cheaper (than China).” Earlier this month, Micromax had announced that it was investing $45 million on construction of new factories to make its phones in India.
Along with Karbonn and Celkon, Micromax had signed an MoU with the Andhra Pradesh government to manufacture phones in Tirupati in September 2015. The Andhra Pradesh government had stated that it aims to sanction manufacturing of six to seven million units per month by next year, out of the plants in the state.
Indian companies are not the only ones to plan or begin manufacturing in India. In August, Lenovo had announced that it will start manufacturing smartphones for its own brand and Motorola, in India. Motorola's Moto E was already rolling out of its manufacturing plant in Sriperumbudur, Chennai, at that point of time, and the plant intended to start making the Lenovo K3 Note, soon. Last month, Lenovo said that it is hoping to increase its annual smartphone production to 10 million units. The company currently produces about 6 million units a year.
Other Chinese companies to announce making devices in India include Gionee, Oppo and OnePlus. All of these three have partnered with Foxconn for making their phones. While Gionee has already launched its first ‘Make in India’ smartphone, the F103, in October 2015, Oppo and OnePlus have announced that they will start assembling their phones in India, with Oppo already having started the same at Foxconn’s facility, on a trial basis.
Source: Reuters
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