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Noida becomes hub for mobile phone makers' offices, R&D centres

A report by Assocham and KPMG says India likely to have 180 million smartphones by 2019, or 13.5% of total global market

Moulishree Srivastava & Raghavendra Kamath  |  Mumbai 

Smartphone camera lenses made of Iupizeta EP specialty polycarbonate
Smartphone camera lenses made of Iupizeta EP specialty polycarbonate

is becoming a hub for makers to set up their offices and R&D centres, with India turning out to to be a sweet spot for them.

While the city was a home for assembly and manufacturing facilities, a number of mobile makers are now putting up offices along with research and development units in the area.

India, which is the fastest growing market globally, is expected to overtake the US as the second-largest market next year, according to a recent research report. Another recent report by and said India is likely to have a total number of 180 million smartphones by 2019, claiming 13.5% of total global smartphone market.

The country is seeing a robust growth in the smartphone brands entering and setting up operations and manufacturing bases.

Chinese mobile manufacturer leased 250, 000 sq ft area in World Trade Centre at Greater Noida, to set up its office, R&D and manufacturing unit in second quarter of this calendar year, according to the US based services firm International.

Another Chinese smartphone brand leased 160,000 sq ft in Noida, while homegrown mobile company Lava, which recently inaugurated its second facility in the region, took up another 100,000 sq ft of office space there, as per the data collated by

"Lava's corporate office has been established in and all the national operations are being managed from there," said Sanjeev Agarwal, chief manufacturing officer, Lava International. "Moreover, the testing team at Lava is based out of the national headquarters."

While Lava has a repair factory based out of Noida, the company is in process of establishing a R&D facility in the vicinity, he added.

like to remain in the vicinity of other vendors to leverage common component suppliers and economies of scale sometimes, said in a recent report.

Sky Li, Oppo Global vice president, MD of International Mobile Business and President of Oppo India says has become a hub for smartphone given the space and the feasibility.

Oppo, which has set up an assembly unit and plans to build SMT (surface-mount technology) factory in Noida, is looking to hire close to 1, 000 employees this year for its factory in Noida, said Li.

Similarly, Gionee has plans to set up its R&D facility in India by the first quarter of 2017 in the Delhi NCR region since the company is headquartered in Delhi.

According to Vishal Tripathi, research director at Gartner, the proximity to NCR could be one of the reasons, because then have the talent pool available which they can tap.

"Also, since there are smartphone companies manufacturing in the region, which makes the area familiar," he said. "Now that the couple of these companies have set up their offices and R&D facilities in Noida, others will follow the suit."

At present there are 25 handset makers, which have started production in India, while 37 new manufacturing units have come up creating 37,500 new jobs, said Electronics and IT Minister earlier this week.

Ashok Kumar, Principal and managing director, Gennex partners, a realty services firm said ever since the Centre introduced a 10.5 per cent duty differential between imported devices and those made locally in last year's budget, the region has become India's biggest smartphone hub .

"The flurry of investments to the region was perhaps prompted by the presence of Korean giants and , which started local manufacturing a decade ago but now followed by other Korean, Chinese , Taiwan and even local mobile companies," Kumar said.

As per the data collated by lobby Indian Cellular Association, the value of mobile phones made in India is likely to touch Rs 94,000 crore in the current fiscal from Rs. 54,000 crore in 2015-16.

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source--Colliers International

 

 

First Published: Wed, August 31 2016. 17:58 IST
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