Xiaomi Doubles Down on Its 'Make in India' Plans

Xiaomi on Monday announced a major expansion of its "Make in India" plans, with the opening of three more smartphone plants in India. Xiaomi said it has also started manufacturing smartphones at its power bank plant in Noida, resulting in a total of six smartphone manufacturing plants in India across three different campuses in Uttar Pradesh, Tamil Nadu, and Andhra Pradesh.

Xiaomi also announced its first SMT (Surface Mount Technology) plant dedicated towards local manufacturing of PCBA (Printed Circuit Board Assembly) units in Sriperumbudur, Tamil Nadu, in partnership with Foxconn. Xiaomi says that current manufacturing operations in India only contribute towards 10 percent value of the smartphone, but with PCBA manufacturing, that number should jump to nearly 50 percent. Xiaomi expects to ramp up its PCBA production to close to 100 percent of its locally produced phones within Q3 2018.

"In 2015 we extended our long-term commitment to the Indian market by joining the 'Make in India' programme. Today we are deepening this commitment with three more smartphone factories and our first SMT plant dedicated towards local manufacturing of PCBA units," said Manu Jain, Vice President, Xiaomi Global and Managing Director, Xiaomi India.

Xiaomi made these announcements at its first-ever Supplier Investment Summit in New Delhi on Monday, where the company is hosting over 50 global smartphone component suppliers. The company says along with its partners, it aims to bring in an additional added investment of over 15,000 crore rupees and create as many as 50,000 job opportunities in India.

The three new smartphone plants, built in partnership with Foxconn, are located across campuses in Sri City, Andhra Pradesh and a new campus in Sriperumbudur, Tamil Nadu with a total campus area of 180 acres. Xiaomi says the factories with Foxconn now employ more than 10,000 people, of which more than 95 percent are women, who are responsible for all the assembly work. With the new factories, Xiaomi says its India facilities will be capable of producing two smartphones per second during operational hours.