Xiaomi sets up new third-party manufacturing plant in India to produce cheap powerbanks

BT Online   New Delhi     Last Updated: November 22, 2017  | 08:21 IST
Xiaomi to make power banks in India at new third-party unit in Noida

Chinese tech comany Xiaomi announced that it has entered into a deal with Hipad Technology to sublet manufacturing of its power banks to a third party in India. This new contract-manufacturing unit un Noida is third such facility by the company in the country. The compnay also launched 10,000 mAh Mi Power Bank 2i and 20,000 mAh Power Bank 2i here today.

Unlike the previous two facilities in Andhra Pradesh, this new facility will dedicatedly work on powerbanks. The localisation of production will help the company bring the prices down without sacrificing on quality. 

Spanning an area of over 2.3 lakh sq ft, the facility will initially employ over 500 people and this number will be increased with passing time.

The new manufacturing unit has a capacity to make seven power banks a minute, Xiaomi India Head Manu Jain told reporters here.

The recently launched 10,000 mAh Mi Power Bank 2i and 20,000 mAh Mi Power Bank 2i will be made at the facility, he added. Jain, however, did not divulge details of the capital being invested in the facility.

"We have seen phenomenal growth in a short span of time and a key reason for that has been our commitment to India. We want to bring the best quality technology at an affordable rate and local manufacturing helps us in that," Jain said.

The two other third-party manufacturing facilities in Andhra Pradesh make smartphones for Xiaomi in partnership with Foxconn. These have provided employment to over 5,000 people with 90 per cent being women, Jain said.

"Today, more than 95 per cent of our smartphones sold in India are assembled locally... We are open to expanding capacity as well as setting up new factories if there is a requirement," he added.

According to research firm IDC, Chinese handset maker Xiaomi caught up with industry leader Samsung to share the top spot in India's smartphone market for the September quarter with each player accounting for 23.5 per cent share.

Talking about the power bank market in India, Jain said there is no third-party data available for the market.

"However, the potential is huge. A major challenge is fake power banks flooding the market. We are trying to address this by adding hologram security markers to help customers know they have bought a genuine product," he said.

The hologram sticker has a scratch card that reveals a set of numbers that can be checked online to know if the product is genuine.

The 10,000 mAh power bank manufactured in India will be priced at Rs 799, while the 20,000 mAh variant will be available for Rs 1,499.

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