Xiaomi to open 7th manufacturing unit in India; increases production capacity by 50%

Xiaomi India, in an attempt to expand its manufacturing footprint in the country, has announced a new manufacturing facility, taking the total count of its manufacturing plants to 7. The Chinese tech company, under the Make in India programme, has planned a 1 million sq ft facility, in partnership with electronics manufacturing company, Flex, housed in Chennai.

Xiaomi's plan to expand manufacturing in India was made public during the launch of its Redmi Go smartphone and Mi-Pay service in the nation. Manu Kumar Jain, Xiaomi India MD, while making the announcement said that while the company now has over 20,000 employees in India, 95 per cent of them are women. Xiaomi's production capacity, with the start of the new facility, has increased from 2 phones per second to 3 phones per second in the country.

Jain added that almost 95 per cent of Xiaomi's phones are made in India with 65 per cent of the phone's value sourced domestically. The company is working towards covering the 5 per cent gap in local production and will soon manufacture nearly 99 per cent of the total phones it sells in India within the country's borders. Manu Kumar Jain also added that the tech company now produces television sets, smartphones, power banks, batteries, and chargers in India, and is aiming to expand into other product categories as well.

Xiaomi stated that it will not only be assembling smartphones at the new production plant but will also manufacture Printed Circuit Board Assembly (PCBAs), which costs up to 50 per cent of the value of the smartphones. The company now has partnered with three companies - Flex, Foxconn and Hipad - in India. The latest manufacturing unit will be an addition to Xiaomi's existing manufacturing plants in Noida, Tamil Nadu and Andhra Pradesh.

Recently, Xiaomi had invested Rs 3,500 crore in India to expand its Mi Home retail stores and business in the country.

(Edited by Vivek Dubey)

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