Gionee India will invest 500 crore for upcoming plant in northern India

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Gionee

Gionee, one of China’s largest smartphone manufacturers, is to set up a manufacturing unit in India for its smartphone sales in the country. The Shenzhen-based company will invest about INR 500 crores in order to put up the plant which will help them meet escalating demands in both India as well as other countries in South East Asia and Africa.

As for the specific location of the manufacturing unit, Gionee officials have been rather vague, only offering the information that it will be set up somewhere in northern India. Arvind Vohra, MD and CEO of Gionee India told PTI, “We are in theprocess of getting land in northern India. The 50-acre unit will have an annual capacity of 30 million units. It should be operational in about two years.”

At present, Gionee India assemblesits units for sales in the country through third-party companies.About 60 percent of the firm’s devices sold inIndia are manufactured at units which are run by Foxconn (at Tamil Nadu) and Dixon (at Noida). Speaking about the upcoming plant, Vohra also added that it will be an end-to-end manufacturing unit.

Gionee has contributed to the significant boost in smartphone shipments in India, which had seen a steady decline for two consecutive quarters. Gionee India already has a sale rate of half a million units per month, and Vohra said that he expects the numbers to double by the end of this year. He added that the company has experienced a growth of 100 percent in the last year and he expects the same to be the case in the present year as well.

The company is also slated to invest a considerable amount for marketing and branding purposes.“We had earmarked a budget of Rs 600 crore this year and we have utilised one-third of it till now. About Rs. 200 crore will be pumped in the festival season and the remaining amount will be used in the latter part of the fiscal towards various marketing and branding efforts,” said Vohra. For this end, the company has already signed up Alia Bhatt as its brand ambassador and is in talks with another undisclosed celebrity for the same.

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