Huawei to invest $100 mn in local operations

Chinese telecom equipment manufacturer Huawei Technologies Inc has decided to invest $100 million (about Rs 430 crore) through its Indian arm Huawei Telecommunications (India) Company Pvt Ltd to set up a manufacturing unit and a research and development (R&D) centre.

Ram Dev Sharma, head (product marketing), Huawei Telecommunications (India), said the company intends to set up a manufacturing base in Bangalore with a $60 million and an R&D centre in the same location with a $40 million investment. He added that the company has sought permission from the Foreign Investment Promotion Board (FIPB).

The proposed investment would increase Huawei's total capital infusion to $200 million. The funding would also make it the second Chinese company, after Zhongxing Telecom, to foray into the vibrant Indian telephony equipment sector, which is dominated by the US and European players.

The company plans to undertake, execute or participate in turnkey telecommunication, information technology and infrastructure projects, according to the proposal submitted to the FIPB.