HYDERABAD: An estimated 7.2 lakh mobiles are sold every day across the country or approximately 65 million every quarter. Telangana is one of the largest mobile handset markets and the state government intends to cash in on this potential.
“There’s an increasing demand for electronics and we want to encourage manufacturers to set up facilities. Local production will result in lower costs and eases logistics,” said Jayesh Ranjan, principal secretary, IT.
Sensing the demand, the government has earmarked 1,000 acres for electronic manufacturing units near Maheshwaram. “We are in touch with companies, through Indian Cellular Association (ICA) and also talking to individual players,” he said. Currently, the electronic hardware industry is worth Rs 6,000 crore, of which exports comprise Rs 1,200 crore. “We believe the electronic hardware industry in the state can grow significantly,” Jayesh said.
Recently, homegrown mobile handset maker Celkon announced Rs 200 crore investment at its first assembly plant near Medchel. Similarly, another domestic firm Micromax is expected to invest about Rs 500 crore to set up an assembly and manufacturing plant in Hyderabad and an MoU with the state government is likely to be signed shortly.
“Our second plant proposed in Hyderabad will cater to southern markets and also augment our exports to Asian and African countries,” said Rajesh Agarwal, co-founder, Micromax.
Even multi-national handset makers are exploring options to set up a production base in Hyderabad. Last month, Foxconn, the contract manufacturer for leading electronic giants like Apple and Amazon, met government officials here. “Telangana is a late entrant in inviting mobile manufacturers compared to states in the North and West,” said Pankaj Mohindroo, national president, ICA, which signed a pact with the state government last month to develop an electronics manufacturing ecosystem.
The latest to throw in its hat is Chinese major Xiaomi, which is exploring options to ‘Make-in-Telangana.’ There are over 700 SMEs in the city producing electronic components. “These companies have contributed over 30 per cent components in ISRO’s Mission on Mars (M0M),” Jayesh explained. “There are over 250 units but these cannot expand due to capacity constraints at existing locations. We are building two electronic manufacturing clusters in about 1,000 acres near Maheshwaram,” Jayesh said adding that the government was willing to provide support in terms of tax benefits, land etc.