News » Technology » Spice to set up Rs. 500 crores smartphone manufacturing unit in Uttar Pradesh

Spice to set up Rs. 500 crores smartphone manufacturing unit in Uttar Pradesh

Signs MoU with the UP Govt.

By Dileep Thekkethil

BENGALURU: The Indian smartphone manufacturer Spice will set up a new Rs. 500 crores plus manufacturing unit in Utter Pradesh.

spice-AdAccording to The Financial Express, Spice has signed a MoU with the UP government which will assist the company in building up new inventory, both financially and by providing essential infrastructure under various programs of the state and the central government.

Spice Group Chairman Dilip Modi was quoted by PTI as saying, “The manufacturing unit is part of our contribution to the ‘Make in India’ vision. Domestic manufacturing will also help us introduce affordable mobile Internet devices in India. We will look at devices priced below Rs 5,000 and we intend to start manufacturing by the end of this year.”

He also said that the company’s new manufacturing unit will manufacture smartphones that will be exported to countries outside India in Africa and Asia, which are growing markets for smartphone.

“The India market is around 300 million handsets and there are similar opportunities in Asia and Africa. We will look at first serving the Indian market and then ramp up to cater to these newer markets as well,” said Modi.

He said the new manufacturing unit of Spice will be capable of making 1-2 million smartphones per month in the initial stage and gradually increase the number to 5 million.

He said, “It is important that the component ecosystem also grows along with handset manufacturing, something that we have seen in China, where these villages have been converted into tech hubs. The government is keen on boosting domestic electronic manufacturing and we could see the kind of growth that the auto sector saw with the introduction of component manufacturing in the country.”

Though Spice is a weak competitor in the race for becoming the largest smartphone maker in India, it got into the market way before the other manufacturers including Micromax, which currently leads the race.

Spice is reportedly selling a million handsets a month, earning revenue of Rs.150-200 crore. Like all other Indian smartphone makers, the devices manufactured by Spice has its origin in China.

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