Micromax to invest Rs 300 cr for 'Make in India'

New Delhi, Dec 13: Handset maker Micromax will invest Rs 300 crore over the next few months as it sets up three new manufacturing units in India to ramp up domestic production and reduce dependence on imports from China.

The new plants will be set up in Rajasthan, Telangana and Andhra Pradesh and will become operational over the course of next year. "We have been allotted 20 acres land in Telangana and the civil structure is almost ready.Similarly, in Rajasthan, we have got 25 acres land and construction will start in a few days. Tirupati will also start soon," Micromax co-founder Rajesh Agarwal said.

He added that once all the units are functional, the company will have a capacity of about 4 million units. "We will be able to provide employment to some 3,000-3,500 people in each factory... This is more than 'Make in India', it's about making India a hub for electronic manufacturing as our electronics (import) bills will overshoot our crude bills in the next few years given the heavy demand," he said.

Agarwal added that Micromax will invest about Rs 100 crore on each of the new projects. Currently, the company has an assembly unit in Rudrapur, Uttarakhand that produces about one million units.

This accounts for about 30-35 per cent of its requirement and the remaining are imported from China. "The intent is to manufacture in India. We see that as an industry by 2017, we will start making batteries and other components here in India. It will only mature in the future and I am sure we can export to other markets from India as well," he said.

Global handset makers like Samsung and domestic players like Spice have assembly units in India. International players like Xiaomi, Gionee and Asus have announced assembly units in partnership with electronics major Foxconn in Andhra Pradesh in the recent past.

Handset makers are looking to tap the multi-billion dollar opportunity in India, which is one of the fastest growing smartphone markets in the world.

PTI