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Mobile phone manufacturing comes to India

si Team
Wednesday, February 16, 2005
si Team

India, one of the worlds’ fastest growing telecom markets, will soon have the first homemade mobile handsets as mobile phone manufacturing finally reaches India. Elcoteq, a Finland based Original Equipment Manufacturer (OEM), has commissioned a plant in Bangalore to make mobile phones and telecom equipments.

India joins the select list of countries where mobile phones are being manufactured and Elcoteq is the first company to do this. Elcoteq’s initiative is regarded as India’s manufacturing capability endorsement , hitherto better known as a software powerhouse.

Elcoteq says entering India was based on the country’s burgeoning mobile phone users and sizeable growth potential. Besides this, other factors include a highly skilled and educated workforce, a growing customer base and comparable costs. “There is considerable opportunity to develop a world class, competitive telecom hardware manufacturing industry in India,” the company says.

Though mobile phone manufacturing is innovative in India, there will be creation of new supply chain activities to provide raw materials for the industry and also direct and indirect employment opportunities. This sector could replicate the success of automobile ancillary units.

Telecom manufacturing has made little progress when compared to the growth of telecommunication services. This is where Elcoteq fits, because it will create a whole new manufacturing wave.

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