The state of Andhra Pradesh is fast becoming the capital when it comes to local manufacturing of smartphones in India. Global manufacturing major, Foxconn has already started operations at Sri City and has partnered Xiaomi and Gionee to manufacture their handsets in India. Asus is also expected to come in next very soon and many other brands are likely to follow suit.
As a result, Andhra Pradesh is fast turning into a mobile manufacturing hub with Lava being the latest entrant with an investment of Rs 500 crore towards local manufacturing.
Besides Lava, the Sri Venkateswara Mobile and Electronics Manufacturing Hub at the industrial park at Renigunta near Tirupati — recently inaugurated by Prime Minister Narendra Modi — will boast of leading manufacturers like Micromax, Celkon and Karbonn. The three firms are expected to invest Rs 200 crore each to set up their factories.
In a big boost to cellular and electronics manufacturing in India, Micromax, Karbonn and Celkon have signed up with the government of Andhra Pradesh to set up their manufacturing facilities near Tirupati in Chittoor district of the State. The move by these three cellular companies is also expected to spur the growth of electronics, supplier base and related services.
Together, these three companies are expected to invest about Rs 750 crore with each unit being classified as a major industry attracting various rebates under the State policies and also concessions of VAT, registration and stamp duty.
The decision of these companies comes as a major boost after the global contract manufacturing major Foxconn set up a facility in Sri City multi-product economic zone close by for manufacture of mobile phones for Xiaomi, Asus, Oppo among others.
The site provides great locational advantage being close to Krishnapatnam and Chennai ports and Tirupati and Chennai airports. According to Government estimates, each of this unit could employ about 2000 people. The Industries Department is seeking to woo other manufacturing companies–Intex and Lava to the hub.
All these developments are creating a unique value proposition for the state of AP and set to further establish the state as a favorable smartphone manufacturing destination in India.
Dinesh Shyam Sukha
Editor