Taking a step towards Prime Minister Narendra Modi’s ‘Make in India’ campaign, Micromax Informatics co-founder Rahul Sharma has said that the company is in the process of shifting its production from China to India.
Explaining the reason behind the decision, Sharma said:
“In the next 24 months, 100 percent will be here. There was no ecosystem in India. Slowly, slowly we are attracting one. In terms of manpower, India is far cheaper (than China).”
With this, Micromax aims to consolidate its manufacturing and assembly expenses. At the moment less than two-thirds of its products are assembled in India.
The company which sells low-cost smartphones has grown rapidly since 2008. It has become the second largest smartphone seller in India.
Earlier this month, it announced that it would invest Rs 3 billion on constructing new factories and would make more phones in India to cut its dependence on Chinese imports.
While there was speculation about the company looking for investors to raise capital from investors, Rahul denied it and said, “We are cash positive. We don’t need it (funding).”
The move will boost employment in the country.
To expand the electronics manufacturing industry in India, Foxconn, the company best-known as the manufacturer of iPhones and iPads, announced a $5 billion investment in Maharashtra over the next five years.
In addition, Taiwanese original design manufacturer (ODM) Wistron Corp., and Optiemus Infracom Ltd have said that they would set up a manufacturing facility for telecom products in India.
It is expected that India will soon supplant the U.S. as the world’s second-largest smartphone market after China.