I give some data about this Mi India to you
1 Production Unit: Xiaomi entered India in July 2014, and started local manufacturing just over a year later. It has partnered with the world’s largest contract manufacturer, Foxconn, which made 75% of the company’s phones at its plant in Andhra Pradesh in 2015. Xiaomi sold over 1 million phones a quarter, in 2015
1 Production Unit: Xiaomi entered India in July 2014, and started local manufacturing just over a year later. It has partnered with the world’s largest contract manufacturer, Foxconn, which made 75% of the company’s phones at its plant in Andhra Pradesh in 2015. Xiaomi sold over 1 million phones a quarter, in 2015
2nd Production Unit: Later on, Xiaomi partnered with Foxconn to set up its second manufacturing unit in India at Sri City in Andhra Pradesh. The new facility will be exclusive to Xiaomi, while the older one may see Foxconn making handsets for other vendors too.
"While I cannot disclose the exact capacity, I can tell you that we will be able to manufacture one phone per second whenever the lines are running. The two factories combined will provide employment to about 5,000 people, 90 per cent of which are women," Xiaomi India Head Manu Jain said. The move will help Xiaomi meet about 95 per cent of its demand in India from these two facilities.
However, Xiaomi continued to import accessories, ecosystem products and its premium product, Mi5 from China.
3rd Production Unit: Xiaomi announced that it has entered into a deal with Hipad Technology to sublet manufacturing of its power banks to a third party in India. This new contract-manufacturing unit in Noida was third such facility by the company in the country.
Unlike the previous two facilities in Andhra Pradesh, this new facility was dedicatedly working on powerbanks. The localisation of production will help the company bring the prices down without sacrificing on quality. The new manufacturing unit has a capacity to make seven power banks a minute, Xiaomi India Head Manu Jain.
4th, 5th & 6th Production Unit:
Xiaomi also announced three new smartphone manufacturing plants in India this month i.e April 2018. These plants, built in partnership with Foxconn, are based across campuses in Sri City, Andhra Pradesh and a new campus in Sriperumbudur, Tamil Nadu with over 180 acres of area.
These plants will churn out smartphones along with the company's first Surface Mount Technology (SMT) plant that will manufacture printed circuit boardassembly (PCBA) units in the country at Sriperumbudur, Tamil Nadu, in partnership with Foxconn. Xiaomi had announced that it will be locally manufacturing PCB or Printed Circuit Board in India. A PCB is a key component in almost every electronic device and is the plastic board onto which other components are soldered on to and enables connectivity between them.
Foxconn’s India arm stepped up its local manufacturing efforts by starting the assembly of printed circuit boards (PCBs), which will likely benefit clients such as Chinese phone company Xiaomi and HMD Global, the makers of Nokia devices, as it will give them a price advantage over rivals that have to pay duty on imported PCBs, widely expected to be levied from April.
In the budget for 2018-19, the centre had increased customs duty on mobile phones to 20% from 15%. The government also imposed a 10 per cent tax on imports of key smartphone components, including PCBs. The measures are in line with the government’s Phased Manufacturing Programme, which aims to boost local manufacturing of phones.
With the first SMT plant dedicated towards local manufacturing of PCBA units in Chennai, Xiaomi has also become one of the pioneers in the country to start local assembly of PCBAs.
PCBA is the process of soldering or assembly of electronic components to a PCB or printed circuit board.
SMT is a method for producing electronic circuits in which the components are mounted or placed directly on to the surface of PCBs.
PCBA is one of the most important components of the smartphone, and contributes to nearly 50 per cent of the value of the phone.South Korea’s Samsung is among the only major brand that assembles.
Xiaomi expects to ramp up its PCBA production to close to 100 per cent of its locally-produced phones within the third quarter of the calendar year 2018.
- Xiaomi’s factory in India in Sri City in Andhra Pradesh with 90 per cent women employees
Conclusion:
Right now, Xiaomi has a total of six manufacturing plants in India. The company claims 95% of its smartphones sold in India were manufactured locally. The factories built with Foxconn employ over 10000 workers, of which more than 95% are women. All the assembly work is also done by women.
The three new facilities have now taken Xiaomi’s facility count to six in the country, helping the company double its manufacturing capacity to over two handsets per second, According to Xiaomi’s India head Manu Jain.
Possible Criticism:
A lot of people in the Industry often argue that these are mere assembling units and not manufacturing units.
People even claim that Xiaomi is setting up its assembly units in India and the accompanying criticism is that this is a step towards making the country a nation of screwdrivers.
However, to build a solid manufacturing sector in order to move up the value chain, the push must come from the government. But for now, it’s the screwdriver level technology that will show us the direction.
Sources-
7. https://www.quora.com/profile/Anup-Mohan-12 mister anup mohan
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