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Motorola, a part of Chinese electronics company Lenovo, is planning to begin a manufacturing unit in India. It would probably tap the Chennai factory, which is lying unused since 2013. According to an official, if the plan turns into implementation, this would be the third Motorola manufacturing unit outside China and Brazil.
Senior marketing director for Motorola Mobility's Europe, the Middle East and Africa (EMEA) and Asia-Pacific (APAC) regions, Marcus Frost, was quoted by TOI as saying that, "India is one of the biggest markets for Motorola globally, and also among the fastest-growing. We have started evaluating on whether it makes sense to make in India.”
Motorola phones are being sold through Flipkart in India. However, the company is looking for sales expansion across its 'E', 'G' and 'X' range of devices. The company also seems considering Reliance Jio Infocomm, Mukesh Ambani's 4G venture, for orders for 4G phones.
'Make in India' benefits local manufacturing
The government's 'Make in India' initiative and benefits of the local manufacturing compared to imports is encouraging foreign companies to manufacture in India. 'Make in India' has prompted many companies including China's Xiaomi, Japan's Sony to consider sourcing from India. The Taiwanese behemoth, Foxconn manufactures devices for a wide variety of companies. It is considering to set up factories in India, encouraged by 'Make in India'.
Frost said, "Going through the Chennai factory, or through a contract-manufacturing route, is something that is part of the evaluation."
As a part of the global production re-alignments, the Motorola Chennai factory was suspended around 2013. It used to employ approximately 80 people and was set up at a cost of Rs 170 crore.
Motorola sold more than three million units in India till last year. The company unveiled it’s well-liked Moto G device costing Rs 11,999 (8GB) and Rs 12,999 (16GB).
-Sumana