Spice Mobiles Noida Handset Assembly Plant to Begin Production in June

"The Noida handset manufacturing unit will be ready by June-end," Spice CEO (handset) Amandeep Singh said.

To begin with, the company would produce feature phones and then would also engage in making smartphones, he added.

The company would import handsets in SKD (Semi Knocked Down) form and manufacture the same in the assembly unit, which costs Rs. 7-8 crores (without land valuation), Singh said.

He added that the company had a manufacturing facility at Baddi in the past, but due to labour troubles the unit was closed down.

Singh said the company has decided to focus on the sub-Rs. 4,000 segment in the tier II and tier III markets and has streamlined its distribution strategy, focusing at customer service.

"With aggressive new launches in the sub-Rs. 4,000 (category) we aim to garner 15-20 percent of the Rs. 3,000 crores per month market in the next two years," Singh said.

Realising deficiency in product quality in the past, the company has set up a team to concentrate on quality and inspection of the handsets shipped to India, he added.

Spice chief marketing officer Rajiv Sethi said the handset maker would spend Rs. 100 crores over the next few months on branding exercise.

Spice Mobiles, part of the diversified Spice Retail Ltd, is a Rs. 1,200-crore business.