Odisha on the radar of mobile handset makers

The Indian Cellular Association is in talks with the state government to explore possibilities of manufacture of mobile phones and their components

Odisha may emerge as the manufacturing hub of mobile handsets and associated components with its proposed electronics manufacturing cluster (EMC) drawing the attention of manufacturers.

The Indian Cellular Association (ICA), the apex body of the mobile phone industry, is in talks with the state government to explore possibilities of manufacture of mobile phones and their components here.

"We have initiated discussions with the Odisha government. Preliminary talks have been held with the industries and IT departments. The proposed EMC seems to be a good site for mobile handsets and electronic components manufacturing. Apart from Odisha, we are in talks with the governments of Uttar Pradesh, Maharashtra, Telengana, Gujarat and Andhra Pradesh", said Pankaj Mohindroo, national president, ICA and chairman of the fast track task force constituted by the Department of Electronics and Information Technology (DeiTY).
 

The proposed greenfield EMC cluster planned over 215 acres of land on the city's outskirts, is expected to house over 100 electronics manufacturing units with an employment potential of 10,000-12,000 which will be a mix of skilled and semi-skilled personnel. The state hopes to draw investments of over Rs 2000 crore for this cluster.

In March this year, a delegation of Taiwanese investors led by David Shen, vice president, Wistron Corporation, Taiwan-based original design manufacturer visited the EMC site. Both Wistron and US-based consulting firm M2i are expected to invest in the EMC for manufacture of consumer electronics product.

"The fast track task force aims to revitalise the manufacturing ecosystem for mobile phones to achieve production of 500 million mobile handsets by 2019. This will help achieve a turnover of Rs three lakh crore and generate employment for 1.5 million people. The manufacturing ecosystem for mobile phones will also create demand for component manufacturing worth Rs 50,000 crore", said Mohindroo.

According to ICA, in the absence of corrective measures, mobile exports from India will crash to zero in 2015.

Mobile market in India is estimated to have grown by 32 per cent or to $12 billion in 2014 but imports account for three-quarters of the market. Domestic production fell by 29 per cent in the year mainly due to suspension of production at Nokia plant.

Exports of mobile phones have been declining after touching a peak level of Rs 12,000 crore in 2012. Mobile exports crashed by 70 per cent from Rs 11,850 crore in 2013 to Rs 2,450 crore in 2014.