Xiaomi partners with DBG & BYD to multiply India-made smartphones, televisions

Chinese smartphone manufacturing firm Xiaomi will start producing mobile phones and television sets in India by setting three manufacturing plants in India. Xiaomi intends to meet the domestic demands and improve the export capability of India.

Manu Jain, global VP and India head, took to his Twitter account and shared the future ventures of Xiaomi India.

The manufacturing plants, Xiaomi planning to set up, will contribute to 99% of its smartphones and 100% of its television sets sold in India. Xiaomi is currently manufacturing smartphones in India by partnering with Foxconn and Flex, which have factories in Tamil Nadu and Andhra Pradesh.

Xiaomi has joined hands with DBG India, an electronics manufacturer, for a smartphone manufacturing plant in Haryana that has already started producing and contributed to a 20% surge in production. Xiaomi also collaborated with BYD, a Chinese electronics manufacturing firm, for another smartphone plant in Tamil Nadu, which is expected to start functioning from the first half of 2021.

Manu Jain also stated that Xiaomi has started exporting small quantities to neighboring countries like Bangladesh and Nepal and aiming to develop India as an export hub. However, the primary aim of the upcoming plants is to meet the local demand.

He also mentioned that 75% of the value of a smartphone is locally sourced or manufactured in India like PCBA (motherboard), sub-board, camera module, battery, back panel, USB cable, chargers, boxes, and many more components. The company also aims to start producing camera modules in India.

Xiaomi was the top vendor in India during the year 2020, despite the fall in the Indian smartphone market.

Manu Jain admitted that the entire global and supply chain was disrupted by the pandemic and there was a surge in the demand for smartphones during the later part of 2020, which the company failed to meet.

Xiaomi currently produces television in India by partnering with Dixon Technologies and has a manufacturing plant in Tirupati. Now, Xiaomi has collaborated with Radiant Technology to set up a plant in Telangana. Xiaomi planning to manufacture 100% of its television sets sold in India.

Recently, the government of India introduced PLI(Production Linked Incentive) that provides monetary support to firms aiming to set up manufacturing plants in India. Since then, various firms have shown interest in setting manufacturing units in India. Starting with Amazon, followed by Apple, and now Xiaomi. The firms seem to support the “Make in India” initiative from the government of India.

Manu Jain also mentioned that Xiaomi added 10,000 more employees to their workforce in the year 2020 that took the total count to 60,000. With new manufacturing units coming, new employment and jobs will be created that will ultimately benefit the pandemic-hit Indian economy.