Xiaomi plans to bring 50,000 new jobs, investments worth Rs 15,000 crore to India

Xiaomi's growth story in India is no less than a dream run for the Chinese tech giant. The company sold its first batch of smartphones in the year 2011. In 2014, Xiaomi started selling smartphones in India with the Mi 3. The phone was an instant hit because of the kind of specifications it offered at a rather unbelievable price. Since then, the company has witnessed growth in leaps and bounds, especially after the launch of the budget friendly, Redmi line-up. 

Since the last quarter of 2017, Xiaomi has maintained the top position in the smartphone market, even ahead of long-reigning Samsung. One of the biggest factors behind this growth is its capability of manufacturing smartphones within the Indian boundary. The company even started manufacturing PCBs (printed circuit board) in Tamil Nadu, India to reduce smartphone production costs and improve supply.

 In an interview to Financial Express, Xiaomi India head Manu Kumar Jain claimed that the company wants to get smartphone component manufacturers to set shop here in India. He stated that this advent of manufacturers will create around 50,000 jobs in the country and invite an investment of Rs 15,000 crore. 

Manu explained how in-house production of PCBAs will lead to greater employment opportunities. "To create a strong PCBA manufacturing base in India, we conducted the first ever Global Supplier Investment Summit in India which brought together more than 50 international suppliers and gave them a first-hand experience of the potential opportunities in India," he said.

Following the summit, he claimed that few suppliers wanted to explore opportunities in India. He stated, "Few of these suppliers are hoping to explore potential opportunities with the Indian government in order to set up manufacturing units in the country."

Additionally, Xiaomi's SMT (Surface Mount Technology) plant that manufactures PCBAs in Tamil Nadu is working with Foxconn to set up more manufacturing plants across the country. As far as smartphone manufacturing in India is concerned, Xiaomi is currently producing 95 per cent of the phones it sells within the country. The plants can produce up to two smartphones per second during working hours.

Manu reiterated the company's focus on Indian market. According to him, India is the biggest market for the company outside China and they will continue to keep it at the top of its priority list.

 The smartphone company also expects to increase its offline presence it India. Xiaomi expects offline retail to account for about half of its smartphone sales, up from about 30 per cent currently, by early next year as it expands its presence into small cities.

Xiaomi, which is present in offline retail in the top 30-40 Indian cities through its Mi Preferred Partners and Mi Homes, wants this number to more than double to around 100 cities by early next year.