Gionee invests Rs 300 cr for manufacturing plant in India

Chinese smartphone maker, Gionee, is planning to set up manufacturing plant in India with an investment of Rs 300 cr.
Gionee invests Rs 300 cr for manufacturing plant in India

Capitalising on ever-increasing demand for its handset in Asia’s third largest economy, Gionee, the Chinese Smartphone maker is planning to set up a manufacturing plant in India with an investment of Rs 300 crore by 2018.   

For the consultation purpose, the company has roped in Ernst & Young to advise on partners and potential locations across the country.

Company’s manufacturing unit in India will cater to the domestic market along with SAARC and Nigeria region. Initially, the company will be manufacturing entry-level devices.

"We have already seen two locations. Our head of manufacturing, who takes the final call, is visiting in three weeks. Post that, we will be in a better position to talk about the location," said, Arvind Vohra, Chief Executive Officer and Managing Director, Gionee India.

The company has proposed Rs 225 crore for marketing and advertising- Rs 93 more from last year’s Rs 132 crore.

Gionee, which claims to have sold 4 million devices in India last year, is confident of sales doubling this year. India is already the second biggest market for the Chinese firm.

"Last year, we sold 4 million devices in India and 28 million globally. That is one-seventh of the total sales. This year, we expect the sales to touch 8 million," added Vohra.Other handset makers like Karbonn and Xiaomi are also looking at setting up manufacturing unit in India as the government tries to prompt these firms with sops for local manufacturing.

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