Chinese mobile-phone maker Transsion mulls second manufacturing unit in India

China-based mobile-phone maker Transsion Holdings — owners of brands ‘itel’, ‘Infinix’ and ‘Tecno’ — is exploring the possibility of setting up a second handset-making facility here in India.

The company is also looking to set up a full-fledged research and development (R&D) unit soon. The parent company, Transsion Holdings is going live (due for an IPO) at the Shanghai’s Nasdaq-style Star Board, later this month. Africa remains Transsion’s biggest market, followed by India.

According to Arijeet Talapatra, CEO, Transsion India, the company will take a call on setting up its second facility and the R&D unit in a couple of years. At least five State governments have already offered land for the R&D unit.

The handset-maker’s current manufacturing facility is at Noida (Uttar Pradesh) with an annual capacity to produce 15,00,000 feature phones and 650,000 smart phones. Capacity utilisation at the facility stands at “near 100 per cent”. Its R&D facilities are, however, located at Shenzhen and Shanghai (in China).

“We are evaluating the proposal, and by 2020 or 2021 we would take a call on setting up a R&D facility here. Moreover, depending on sales volume, we will also look at having a second handset manufacturing facility,” he told BusinessLine. He did not mention the investments that the company will make across these facilities.

Talapatra was in the city to launch a new handset of ‘Itel’. He said India continues to be a strategically important market for the handset-maker and it has “long term investment” plans here. “We already have over 5 crore customers for just one brand and that is ‘itel’. It reiterates our focus on India which is a strategic market for us,” he said.

It is also looking to build the component ecosystem here. Out of its 80-odd vendors (component suppliers) globally, near 25 per cent of them are present here in India.

“All our phones sold in India are made here. We are looking to develop the component ecosystem too. However, some of our global vendors (component suppliers) have already set up shop here,” he said.

Published on September 24, 201
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