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    Chinese, Korean smartphone companies look at sourcing from India

    Synopsis

    The move has prompted global contract manufacturers such as Taiwan's Foxconn and Wistron to make India a base, as smartphone sales are growing at a rapid pace.

    TNN
    NEW DELHI: Chinese and Korean smartphone makers are increasingly looking at sourcing from India, thanks to around 12% duty slapped last year on import. The move has prompted global contract manufacturers such as Taiwan's Foxconn and Wistron to make India a base, as smartphone sales are growing at a rapid pace.

    The $20-billion Wistron seems to have made quick gains through its joint venture with Delhi-based Optiemus Infracom. The JV -Optiemus Electronics (OEL) -has emerged as the single-largest contract manufacturer for smartphones in the country and has bagged deals from Korea's LG, China's OnePlus, Taiwan's HTC and Chinese major Oppo.

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    OEL was formed last year and Indian promoter Ashok Gupta holds 80% equity . The company has been expanding at a rapid pace as more and more global device companies are looking at sourcing from India.OEL's manufacturing facility on 78,000 sq meters at Noida in Uttar Pradesh has an annual capacity of 8 million units. It will employ around 4,000 people.

    “We have begun produc tion for LG, Oppo, HTC and OnePlus and 20 manufacturing lines have been installed,“ Ravinder Zutshi, a former senior official at Samsung India and who is now the MD of Optiemus Infracom, told TOI.

    The JV is investing $200 million and has also applied for a second manufacturing loca tion at Greater Noida. “This will be a mega facility on a global scale and will be spread across 25 acres. We plan to start manufacturing from next year.In the first phase, we will begin with a capacity of 15 million units, and will increase it to 25 million units over the next five years. We have plans for deeper level of manufacturing and are looking to make printed circuit boards (PCBs),“ Zutshi said.

    At present, there are only a handful of companies that are indigenously developing PCBs in the country , which are core to the manufacturing of mobile and electronic devices. The high-technology component largely gets imported from locations such as Taiwan and China.

    Zutshi added that more tieups for contract manufacturing were in line. “We are looking at adding more brands to our production kitty and are in talks with some of the big brands.“
    The Economic Times

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