After Micromax established its manufacturing unit in Hyderabad recently, another player from Indian roots has stepped up to further expand its manufacturing facility in the country. Karbonn Mobiles has decided to invest over Rs. 800 Crores for the next three years for manufacturing mobiles in India.
Karbonn Mobiles is also setting up its manufacturing facility in Hyderabad and the company aims to double their production level by operating simultaneously through their Noida plant and the new Hyderabad plant.
“We will be investing up to Rs. 800 crores on mobile devices manufacturing in the next three years. Production at our Noida plant in UP and Telangana plant will start within the next two quarters. In a year, we expect local production to meet 60-70 percent of our domestic market requirement,” Karbonn Mobiles Executive Director Shashin Devsare told a leading news organization.
As per the reports, Karbonn Mobiles has its fair share in the Indian market by being the third most sold phone in the country.
“We are not dependent on external funding. We are the only brand that has announced two manufacturing units. Out of the total, Rs. 450 crores has been allocated for our Telengana plant and Rs. 100 crores we have invested in setting up Noida assembly unit,” Devsare said.
Most of the mobile phone companies are now shifting their base to India to manufacture their phones, as the Government of India has raised duty for imported devices. However, this move will certainly give a major boost to Indian PM’s pet project ‘Make In India’.
“We are going to look at full-fledged manufacturing in India but we have to look at sourcing components from abroad because most of the components are not available locally. Lesser we will be dependent on imported components, better it is going to be for us,” he said.
“It is a game of those who are trying to get valuations and not confident about their internal accruals to fund their growth plan. Karbonn has always grown on internal accruals. If you have to make in India then you have to spend money earned from India. Not necessarily from foreign investors,” Devsare said.
