As it seeks to spread its roots even further in the country, Amazon.com, Inc. (NASDAQ: AMZN) is all set to kick off its manufacturing operations in India.
In what is a first for the e-commerce giant e in India, the Seattle-based company will begin manufacturing starting with the Fire TV stick devices, joining a horde of tech companies looking to embark on manufacturing operations in the desi land.
According to reports, the global behemoth will start making the devices via a subsidiary of its manufacturing partner Foxconn Technology Group. Production is slated to commence later this year in the facilities outside Chennai. For those unaware, Taiwan-based Foxconn is one of the world’s largest makers of iPads, iPhones, and Xiaomi devices.
Following the announcement, the online retailer will be joining esteemed electronic giants such as Apple and Samsung in pledging to make their devices in the South Asian nation.
The move has got the government’s nod, it would seem, as Ravi Shankar Prasad, Minister for Communications, Electronics and Information Technology and Law and Justice, was quick to moot his approval by saying that it will provide a huge endorsement for the PLI Scheme and further the mission of Atmanirbhar Bharat, which is digitally empowered.
While the device manufacturing program will be able to Fire TV Stick devices as per the demand, the more important things come with the opportunities it will open.
With its latest manufacturing program announcement, it is an indication enough of Amazon’s bid to push through on the Indian frontier. The company has also committed to an investment of $1 billion to digitize 10 million small and medium businesses, helping Indian companies export $10 billion of goods, whilst creating an additional 1 million jobs by the year 2025.
Amazon’s efforts to deepen roots in India are in line with founder Jeff Bezos’s thinking of seeking to harvest the enormous workforce and build India into one of his biggest e-commerce operations outside the homeland US.
The sailing has been far from smooth for Amazon, which despite its successes, has had to deal with pressure from traders’ groups, Indian government’s rules around foreign investments, and engage in a tussle with Future Group to compete in the estimated $1 trillion retail market that is India.
The timing of Amazon’s decision to join the Make In India bandwagon is intriguing, to say the least. A ploy to get into the government’s good books? Maybe.
Whatever it turns out to be, aside from strengthening the sector in India, Amazon manufacturing strategy looks to rewarded big time from the current seat.
Stay tuned for more updates.