DataWind to source low-cost mobiles from local manufacturers

The company in a commitment to 'Make in India' hopes to generate 1,000 new direct and indirect jobs here in the next one year

The maker of Aakash tablet, DataWind, today said it was in the process of partnering with electronic systems manufacturers in India to source mobile phones as part of the company's plan to offer internet-bundled low-cost smartphones.

“We have made a commitment to move 90 per cent production of low-cost mobiles, tablets to India in 90 days. In this regard, we would like to partner with electronic systems manufacturers to have production happening in three locations in one year,” said Suneet Singh Tuli, president and CEO of DataWind.

The company, he said, in a commitment to ‘Make in India’ hoped to generate 1,000 new direct and indirect jobs here in the next one year.

Though the tax proposals in the Budget had influenced its decision to make devices in India, Tuli said they wanted some of the state governments to rationalise the existing high sales tax in order to kickstart local manufacturing.

“The Union Budget had given an 11.5 per cent cost advantage for device manufacturers by reversing the inverse duty structure. This is of huge significance as the industry works on margins of 7-7.5 per cent,” Tuli told mediapersons here today.

He said Delhi remained as the most-attractive for setting up a manufacturing facility due to an attractive 5 per cent sales tax. The company was also in talks with states including Punjab, Bihar and some of the southern states, including Telangana. “Our big markets are in the south and we wish to locate near them,” he said. DataWind's India operations are headquartered in Punjab.

The Toronto Stock Exchange-listed company estimates around 21 million phones are being sold every month in India of which, feature phones occupy a lion's share at 14 million. With the annual feature phone sales at 160 million units, DataWind is aiming at three per cent share at 4.8 million units.

The company today unveiled a slew of PocketSurfer 2G and 3G-compatible low-cost mobiles priced in the range of Rs 1,999-5,999, here. It is offering a one-year free unlimited basic internet browsing in partnership with Reliance Communications for the buyers. It has roped in distributors including Naaptol, Spice and Sangeetha to market them exclusively.