The trade wars between India-China amidst this ongoing Covid-19 crisis are accelerating a shift in global manufacturing out of China. Highlighting this shift, India now has a window of opportunity like never before to rise as a global manufacturing hub. In addition, with the world’s youngest workforce in place and a sizeable domestic market, India is demographically quite well positioned.
The past few months have witnessed a major shift, not only in the economy of the nation, but also in the way we think, live and consume things. One such change has been clearly evident in the “Make-In-India” movement that was introduced quite before. But now, with the concept of becoming “AtmaNirbhar” proposed by the government, a lot of Indian mobile manufacturing companies have taken some serious steps to enter this unique bandwagon. A step that has encouraged multinational and domestic companies to manufacture their products in India with lowered production costs, and with the objective of attracting capital and technological investment in India.
To capitalize on this opportunity completely, a well thought strategy for specific sectors, focused investments in competitiveness enablers, meticulous execution and smart market promotion are now needed.
Moving on, amid the rising anti-China sentiments currently, a lot of people have already been talking about boycotting Chinese smartphones. But then, several brands are marketing their phone as “Made in India.” Let’s throw some light upon what exactly does made in India means, and what phones are manufactured locally in India.
With more than 100 players, the mobile phone market in India has grown exponentially in the past decade already, and with the emergence of smartphones, the growth has increased exponentially.
Some time back Samsung Electronics Company had already opened the world’s largest mobile phone factory in India, in a win for the Indian Prime Minister Shri NarendraModi’s flagship program to lure investors to manufacture in the country. Theyfurther added a feather in the cap to the ‘Make in India’ initiativeby launching ‘Make for the World’ initiative. In this, the company aimed to export mobile handsets produced in India to overseas markets.The Samsung factory is making everything from low-end smartphones to flagship models. SO, this was indeed a smart step taken by this well know smartphone manufacturer.
Now what are the implications of this ‘Make in India’ concept to the mobile phone manufacturing ecosystem?
Well, with this initiative, mobile phone manufacturers will leverage this opportunity to either manufacture in India or source the various mobile phone components from an abundance of Indian suppliers. This will lead to reduced manufacturing costs. Both foreign and homegrown mobile phone manufacturing companies will in coming times leverage the benefits of lower Indian labor and logistic costs as well as benefit from the favorable movements in the foreign-exchange.
Mobile industry is already showing rising competition, the result of which is that some known domestic brands are facing this competition rage and trying to emerge as the best players in their niche. Few of these players are: Micromax, Celkon, Intex, Lava, Karbonn, iBall and Spice.
Micromax plans to croresin the coming months as it sets up three new manufacturing units in India to elevate the domestic production and reduce dependence on imports from China. With this grand comeback in India and while banking high on the Make in India initiative, MIcromax will be setting up its first design lab in India. It is planning to set up its new plants in Rajasthan, Telangana and Andhra Pradesh and will become operational soon.
In a step to enhance its capacity to higher levels, Celkon, country’s leading Smartphone player was one of the early movers in foreseeing a manufacturing unit in the country and has been actively pursuing the leading bodies to bring about a supportive ecosystem that can enable handset manufacturing. They are all set to meet the demand of game changing products and contribute to the overall ‘Make in India’ revolution promoted by the government of India.”
Intex is an Indian handset manufacturer which spun from making computer peripherals. It began with feature phones and then shifted to making Android smartphones. It is now one of India’s biggest smartphone makers. Also, a strong supporter of the Indian government’s Make-in-India initiative, Intex currently operates two full-scale manufacturing facilities in Jammu &Baddi in Himachal Pradesh. The company’s operations are managed on a world-class collaborative business solution SAP, on a Virtual Private Network.
Lava has been successful in setting up its plant in India and giving opportunities to the underprivileged youth of the country. To contribute towards advancing the country, Lava Mobiles have been successful in gaining customers’ faith keeping in mind the needs of Indians. Resting as one of the leading Indian smartphones and tablets manufacturers, it is giving tough competition to other international brands too.
Karbonn invested croresto set up a manufacturing plant at Tirupati in Andhra PradeshIn line with the government’s ‘Make in India‘ initiative. With India now becoming the fastest growing smartphone markets in the World, they plan to develop the entire manufacturing ecosystem in India along with component manufacturing. With a setup in Noida and Haryana, they have already started their functions.
Next in line are players like iBall and Spice which will now try to garner attention of Indian mobile phone users with exceptional offerings.
Recently, international players like Xiaomi, Gionee and Asus have announced assembly units in India in partnership with electronics major Foxconn in Andhra Pradesh.
Be it the design, value-for-money, technology, and efficiency, these Indian mobile manufacturing brands are excelling in all desirable fields and walking in line with the Make in India initiative – a great boon!
We truly believe and agree to the fact that ‘Make in India’ programwill successfully provide a win-win situation for mobile phone manufacturers and consumers. Though one cannot deny the fact that there would be some level of penetration from the foreign mobile phone manufactures also, majorly in the price sensitive rural market to offer the cost benefit to the consumers. But, on the other hand, it will also spur technology innovation in this domain as domestic smartphone manufacturers would successfully compete with these foreign brands. Eventually, what we will witness is the end users enjoying technology at a more affordable cost.
Few Limitations that Mobile Market May face
The shift to Make in India might be emerging quite quick, but still quite a few things might still remain to be tackled. Indiscreet market regulation in India, inflexible labor-market practices, poor infrastructure, supply chain blocks, rigid land-acquisition rules to name a few. With the varied political groups and pressures on government due to opposition parties, these agendas get delayed further impacting investments and growth. Quite common problem in Indian market since ages.
The future still remains on the bright side with the growing demand of mobile phones, especially smartphones. This will lead more mobile phone manufacturers to invest in Indian and go Vocal for local and launch Made in India mobiles.