Xiaomi to set up three new factories in India to meet escalating demand

Xiaomi to open new factories in India

Yes, the news is confirmed. Xiaomi is taking the “Make in India” initiative to the next level by opening three new factories in the country now. The company made this announcement at the inauguration of Supplier Investment Summit. It is hosting fifty global smartphone suppliers. These suppliers are being taught about the Indian smartphone market and its functioning. 

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Xiaomi wants these suppliers to manufacture smartphone components in India only. Normally, companies like Samsung etc just assemble the components in India and they are shipped from here from the other countries. Xiaomi wants to eradicate this dependence on the other countries by making its smartphones completely in India.

If all these suppliers agree it to manufacture all the components in the country, then it would be “biggest ever single investment in the electronic manufacturing industry”. It would create more than fifty thousand jobs and a whopping investment of $2.5 billion. The company started assembling components of smartphones in 2015. A factory was set up for this purpose and the second one was established in 2017. 

Xiaomi

The company also claims that ninety-five percent of its phones are assembled right here in India. With the three new factories, the company plans on manufacturing the components of the phones domestically. It will soon open a factory in Sriperumbudur, Tamil Nadu where it will manufacture Printed Circuit Boards with the help of Surface Mount Technology. This single component consumes fifty percent of the total production cost. By manufacturing it in the country itself, the company will reduce the production cost. 

By the third quarter of 2018, all Xiaomi phones will come with home-made PCBs, says the company. Manu Kumar Jain said, Xiaomi’s high-quality, well-designed products at honest prices have been instrumental in disrupting the Indian smartphone industry. In 2015 we extended our long-term commitment to the Indian market by joining the ‘Make in India’ programme.

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Today we are deepening this commitment with three more smartphone factories and our first SMT plant dedicated towards local manufacturing of PCBA units. Xiaomi is one of the pioneers in the country to start local assembly of PCBAs, and I believe we will continue to play a key role in transforming India into a global manufacturing hub.”

By introducing such factories and opening more Mi Home stores, we are hoping that Xiaomi will do away with the flash sales of its devices. We still remember the havoc caused by the Redmi Note 5 Pro in the market. What do you think about this move by Xiaomi? Let us know in the comments section below. 

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Avica Bedi
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The only girl in our all-male club, Avica is a distinguished personality with a background in literature. If you are bored and need a respite from your daily grind, hit up Avica for some interesting animal trivia. When she is not swooning over books, tea and dogs, Avica endeavours to make subtle changes in the world through her startup.