April 9, Xiaomi announced the opening of 3 new Smartphones production factories in India. At the same time, the company announced the cooperation with a mobile power plant of the nation to open new plants. At the moment Xiaomi already has 6 Smartphone factories in India and its expansion plan continues.
In addition to the previously announced, the company is cooperating with Foxconn to establish the first assembly factory for PCB boards, which will represent another achievement in Xiaomi‘s universal expansion strategy.
Xiaomi grows tirelessly
All these important announcements were made at the first supplier investment conference held in India. In total, more than 50 global suppliers of smart mobile components participated in the meeting. Taking advantage of the opportunity, Xiaomi presented its manufacturing ecosystem used in India, with the intention of helping them establish new facilities in the country.
If all investors reached a manufacturing agreement, this would represent the most significant investment in the manufacture of electronic products in India, creating many job opportunities. The total investment is expected to exceed 150 billion rupees (approximately 2.5 billion US dollars), and it would generate about 50,000 jobs.
The opening ceremony was attended by prominent public figures such as Amitabh Kant (CEO of the National Academy of Transformation of India), Ramesh Abhishek (Secretary of Industrial Policy and Promotion), Deepak Bagla (Managing Director & CEO of Investment India) among others. The first day of the conference also marked the beginning of the arrival of different government representatives to the construction sites and the companies in charge of the work.
“Made in India”
That is the name that Xiaomi uses since 2015 when it announced that it would start the production in the country. In the same year they began to cooperate with Foxconn, and in this way, they managed to open their first factory. They subsequently set up a second Smartphones factory and Xiaomi‘s first mobile power plant in 2017. To date, more than 95% of Xiaomi terminals sold in India are manufactured in the country.
The new Xiaomi factories are still part of the cooperation with Foxconn. They are located in the industrial parks of Seri and Andhra Pradesh, and in the new industrial park in the city of Sriperumbudur in Tamil Nadu. It has a total space of 180 acres. Also, the current factory employs more than 10,000 workers, where more than 95% are women. The new factories will allow an increase in production capacity.
The new PCB board factory gives Xiaomi the status of a pioneer since it is the first of its kind in India. PCB boards are one of the most important components when assembling a Smartphone, which even represents half the sales price. The company plans to increase the proportion of component production in India by 100% by the third quarter of 2018.
During the last three years, Xiaomi has grown enough to be known as the most important smartphone manufacturer in India. According to IDC data, Xiaomi‘s market share in the fourth quarter of 2017 reached 26.8%. Xiaomi still dominates the digital sales of Smartphones in India with 57% of the market. And in general terms of internet sales, the company ranks second with 11.2% of the market.