Xiaomi really is digging its heels to live up to a commitment.
One of the first adopters of the Make in India initiative even before properly entrenching roots in the Indian market in 2015, Xiaomi has now done a solid to come good on its word.
The Chinese smartphone maker has made an announcement of adding two new smartphone manufacturing partners to its Indian table, all in a bid to fortify its manufacturing operations.
Among the said on-boarded manufacturing facilities, the DBG facility has already turned operational in Haryana, while the BYD facility in Tamil Nadu is slated to be completed within the coming months.
The reason for procuring the services of these two facilities was establishing more presence across both the northern and the southern parts of a vast country like India.
With the shiny new partners in its team, it should be noted that Xiaomi has already been operating three manufacturing plants in India, engaging with Foxconn and Flex for the last 5 years, primarily in Tamil Nadu and Andhra Pradesh.
The company has also put forth estimates that the DBG plant in Haryana has been increasing monthly capacity by approx. 20% and the BYD plant is expected to follow the same ramp up patterns when production commences.
“No one else has pushed (as much) for the level of localization that we do at Xiaomi India. In spirit, no other brand is better than us (in this regard)” MANU KUMAR Jain, Managing Director, Xiaomi India
While the smartphone make has always lauded the PLI scheme, it also aims at patching up its supply-side disruptions to make the most of the massive demand in India.
It is a fact that the renewed fervour of doubling down on manufacturing operations in the desi land is offset from the abrupt hurdles in 2020 due to the COVID-19 lockdown. The lockdown paralyzed Xiaomi’s business, just like any other smartphone brands in the country. Bear in mind, in April of 2020, Xiaomi saw absolutely no smartphone sales in India.
Xiaomi has thrust all its efforts into a correctional push. The results have been plain to see too, as going by Manu Kumar Jain’s words (Managing Director, Xiaomi India), 99% of the smartphones are now manufactured in India or locally sourced.
A variety of components that go into making the company’s smartphone, including the motherboard (PCBA), the sub board, the camera module, the back, battery packs, charging cables, and the Mi Power Banks are all getting crafted in India. Local manufacturing value of the PCBA is claimed to hover around the 50% mark by the company.
The Mi smart TV production is another feather in its local arm cap, as effective January 2020, 100% of the company’s Mi smart TVs are being made in India. The company’s effort of taking in Radiant Technology as another partner is in line with furthering domestic manufacturing of smart TVs at a brand new plant in Telangana.
Spreading out its manufacturing branches across the length and breadth of the country, it would seem as the government’s efforts are bearing fruit. In a pandemic wrecked 2020, Xiaomi was able to generate employment for over 10,000 individuals. That is impressive, with the smartphone giant presently having more than 60,000 across offices, manufacturing plants, and other outlets in India. An interesting nugget – 64% of their business leaders are under the age of 40!
With these new initiatives to expand its manufacturing imprints, Xiaomi, at the completion of 6 years in the Indian market, reigns supreme. It enjoys a 27% market share in India, as of February 2021, making it the hottest selling smartphone brand.
For Xiaomi, it is another step in the right direction in its neighbouring and most profitable market.
Stay tuned for more updates.