Micromax to shift manufacturing base in India
Micromax Informatics, India’s second largest smartphone maker, plans to manufacture all of its phones in India by 2018. Micromax’s co-founder Rahul Sharma informed that the company plans to transition its production to India as it is cost effective.
He said that almost two-thirds of its products are assembled in India at the moment and complete home production seems to be a lucrative option given the increasing labour costs in China along with an increasing network of local suppliers of parts.
“In the next 24 months 100 percent will be here. There was no ecosystem in India. Slowly, slowly we are attracting one,” Rahul Sharma reported to Reuters in an interview. He further stressed that, “In terms of manpower, India is far cheaper (than China).”
Micromax announced that it will be investing 3 billion rupees ($45 million) in building new factories and will increase its manufacturing of phones to curtail its dependence on Chinese imports.
Indian Prime Minister, Narendra Modi, is endeavouring to stretch the electronics manufacturing industry in India to generate employment. Also, in August of this year, Taiwanese contract manufacturing giant Foxconn made an announcement of investing $5 billion in India.
Micromax has recently launched its brand YU on Thursday, claming to be the world’s most powerful smartphone.