Ericsson to invest $15-20 mn to set up Pune manufacturing facility

The facility will be operational around June-July next year

Swedish telecom giant Ericsson today said it will be setting up its second manufacturing facility in Pune with an initial investment of about USD 15-20 million(around Rs 99 crore to Rs 132 crore).

The facility, which will be operational around June-July next year, will be used as an export hub for the company.

Ericsson will be making telecom equipment at the plant which will be exported to about 180 countries.

The company already has a manufacturing plant in Jaipur but it is used mainly for domestic markets.

"Around USD 15-20 million will be invested initially for the manufacturing facility in Pune which will be operationalised by mid of next year," Ericsson President and CEO Hans Vestberg said.

Vestberg said the company also plans to double its employee base in India over the next few years but did not divulge more details.

The company currently has about 21,000 employees here.

Vestberg said from 2010 to 2015, the company has added 15,000 employees.

The addition of staff will be for services segment which is growing at a rapid pace for the company.

The Ericsson chief said ICT sector is well on its way to capture the opportunities it brings to people, business and society.

He said Ericsson continues to focus on its R&D beyond mobile networks to include the areas of IP networks, cloud, TV and media.

"Strengthening our position as a leading software company, as well as establishing early leadership in the standardisation and realisation of the next generation of mobile networks, or 5G, are key factors for success," he added.

The company today also launched its new radio system for the Indian market.

The radio system delivers energy-efficient and compact radio solution, while maintaining performance leadership at half the size and weight of previous solutions.

Ericsson said the new system reduces site acquisition issues and delivers three times the capacity density with a 50 per cent improvement in energy efficiency.