China’s Xiaomi wants to create global manufacturing hub in India

Chinese tech giant Xiaomi is planning to boost its presence in India by building three new facilities there. When it meets growing local demand, the firm may use India's production capacities for exports.

Xiaomi teamed up with two local companies, BYD and DBG, to set up mobile phone manufacturing plants, the Chinese firm announced on Thursday. One of the facilities, located in the northern state of Haryana and owned by DBG, is already operational. The other plant in Tamil Nadu is set to go online within the first half of this year.

A television manufacturing plant has been set up in partnership with Radiant Technology in Telangana. Xiaomi did not elaborate on when the third of the new plants is set to open.

The company has been the top smartphone and TV brand in India and already runs several plants in the country, including those in partnership with Foxconn and Flex. Boosting local production will allow the tech giant to manufacture over 99 percent of its smartphones as well as all of the televisions it sells in India.

“We hope to play a small role in building India as a global manufacturing hub,” Xiaomi India Head and Global Vice President Manu Jain said in a statement.

In a separate interview with Indian daily Mint, Jain noted that India could become an export hub for Xiaomi in the future. He said that last year the company exported India-made products to nearby countries like Bangladesh and Nepal.

“We would love to see India as an export hub,” Jain said. “Once we meet 100% of the local demand is when we will start thinking of further increasing out-export.”

For more stories on economy & finance visit RT's business section