Foreign Telecom Majors to Manufacture in South

Avaya, Huawei, ZTE, Le ECO brief minister on India plan, evince interest in setting up shop in AP, TS, TN.

Published: 09th April 2016 04:00 AM  |   Last Updated: 09th April 2016 04:00 AM   |  A+A-


A man walks past a logo during the presentation the Huawei's new smartphone launched by China's Huawei Technologies in Paris, May 7, 2014. | REUTERS

NEW DELHI: US company Avaya and three Chinese telecom gear makers have been invited to set up manufacturing units in southern states of Andhra Pradesh, Telengana and Tamil Nadu, by Telecom and Communications Minister Ravi Shankar Prasad.

Kevin Kennedy, Global CEO of Avaya on Friday assured the Minister, the company’s commitment to expand its operations in India. Avaya is a leading global provider of next-generation business collaboration and communications solutions, providing unified communications, real-time video collaboration, contact centre, networking and related services. It has offices in Chennai, Hyderabad, Bengaluru, Kolkatta, Pune, Gurgaon and Mumbai.

Foreig.jpgThree Chinese telecom companies –Huawei, ZTE and Le ECO also met Prasad on Friday. While the companies did not make any commitments for manufacturing in India, sources in the Ministry said, the companies sought more clarity to set up manufacturing units, in southern state.

“During discussion, the Minister pointed to the excellent platform available in states like Andhra Pradesh, Telengana and Tamil Nadu,” an official who attended the meeting said.

Huawei has bagged contracts with Indian telecom companies for supply of network equipment.  The Indian companies have been able to save on cost due low cost they paid to equipments from Huawei compared to European gear makers. Jay Chen, CEO Huawei India met Prasad along with a team of executives.

He announced that they have plans of expansion in Chennai, where they already have office and also in the R&D unit in Bengaluru. 

ZTE,the other leading Chinese telecom equipment maker, briefed the company’s plans in India. Another Chinese electronic component maker Le Eco also highlighted the plans that they have for India. The company plans to launch TVs in India at low cost.

During the discussion, Liu Hong, Vice-Chairman Le Eco told the Minister that they are interested in setting up manufacturing base in India. He said this could act as a base for exports to the South Asian and African countries. 

Following the presentations by the companies, Prasad asked the Chinese gear makers to take care of the security related issue, so that there are no glitches, which could be used for anti-national activities.

Promotion of Electronic Mfg

With a view to giving a boost to domestic manufacturing in the electronics sector, the Government has taken several steps including special tax benefits in the Budget 2014-15 and 2016-17. It has set up electropreneur park, electronic development fund, fabless design policy, setting up of electronic manufacturing clusters and a modified special incentive package scheme.

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