Nokia Networks to increase localisation in India

The company is working towards implementation of 5G network in future

Finland-based telecom infra manufacturer Nokia Networks is looking at doubling its product localisation in India in the next three years even as it is discussions to get some of its vendors to the country.

The company is also considering India in the list of destinations for the manufacture of fifth-generation (5G) telecommunication systems, said senior officials from the company.

Speaking to reporters after announcing the manufacture of two million components for telecommunication networks, Karl Kirschenhofer, vice president for manufacturing operations, global operations, Nokia Network, said, “Currently our localisation is less than 20 per cent. We are looking at increasing it to 40-45 per cent in next three years.”

He added the company was in discussions with its global vendors calling them to set up their facilities in the region, which would help improve the supply-chain management. The company, however, was looking at localising a segment of the telecom equipment manufacturing business, he said. Presently, most of its vendors are present in China.

Nokia Networks is expecting commercial roll out of 5G network systems starting from 2018. It is part of the group examining the process of standardisation of 5G network systems.

The technology focuses on reducing the latency of communication in the era of ‘Internet of Things’.

The Chennai facility is into manufacture of equipments, including the fourth-generation (4G) systems.

About a quarter of the two-million products manufactured by it are meant for 4G, and almost one-third of the total production caters to the export market.

With a headcount of 1,200, Nokia Network's Chennai factory is one of the largest manufacturing facility in the Indian telecommunications equipment manufacturing sector and is a strategic hub for Nokia's global operations, said Sandeep Girotra, vice president and head of India market at Nokia Networks.

The company invested around Rs 500 crore since 2008 in the 140,000 sq metre facility, which produces and distributes mobile broadband products for advanced technologies such as LTE in domestic and global markets.

When asked whether the company had seen any challenge in recruiting and retaining employees in the wake of the closure of Nokia Corporation's mobile manufacturing plant in Chennai, Girotra said there had been no impact due to the closure.

Amitabh Kant, secretary, department of Industrial Policy and Promotion (DIPP), who was present at the function said that Nokia Network, which currently has around 27 per cent market share, had to increase its operations and market share in India through more localisation creating an ecosystem around the plant.

Ease of doing business

Amitabh Kant, secretary, DIPP, said that the government is looking at improving the ease of doing business and by the end of the year the objective is to have one paper and one point of payment for entrepreneurs to do their business through Ebiz platform.

Speaking to the reporters after the function in Nokia Network's facility near Chennai, he said that around 14 services are integrated in the Ebiz platform at present and the target is to connect 26 services and six states by the end of the year.

"We are working with several states. Our objective is to link the top 10 states. Our objective is that at the end of the year there should be one paper and one point of payment that anybody can get approvals from that one ebiz platform," he said.

Speaking about the government's plan to rank states based on their ease of doing business, he said that the government will name and shame the those states which has not moved forward in this direction, by June or July this year.

He said that the country is in a growth path and IMF has predicted 7.5 per cent growth this year and further to grow to at a level of 9-10 per cent. "But the challenge is to sustain it over the three decade period and that is where the role of companies like Nokia comes in," he said while addressing the Nokia Network employees earlier.