Mobile handset manufacturing is now a Rs.54,000 crore industry

indexSource: The Hindu Business Line, Aug 23, 2016

Mumbai: The Centre’s efforts at making India a hub for electronics manufacturing seem to be paying off in the mobile handset segment.

According to data compiled by the Indian Cellular Association (ICA), the industry body representing mobile phone brands, handset manufacturing in 2015-16 rose a robust 185 per cent in value terms to Rs.54,000 crore from Rs.19,000 crore in 2014-15. ICA estimates that manufacturing activity will touch ₹94,000 crore this fiscal year.

As many as 25 entities are setting up phone assemblies employing over 37,000 people. These factories are coming up across 35 locations in 10 States, and are capable of producing 20 million handsets a month, according to ICA data.

Handset makers such as Micromax, Lava and Intex are already sourcing most of their models sold in the market from their respective factories.

“About 70-80 per cent of all our smartphones, and almost all our consumer electronics, are being manufactured locally. Local manufacturing … will help us enhance the design, and push research and development to suit domestic requirements,” says Rajesh Agarwal, Co-Founder, Micromax Informatics.

Not just Indian brands, even Chinese players such as Vivo and Xiaomi have a local manufacturing strategy.

Of the 220 million mobile phones estimated to have been sold in India in 2015-16, 110 million had some form of manufacturing in Indian locations.

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