Xiaomi India Proposes To boost Local Manufacturing

Xiaomi, a consumer electronics company plans to celebrate its 10 years of operations in India next month. Given the Indian government's cautious stance against Chinese-owned companies, Xiaomi is pushing forward with its ambitious objectives.

According to Mint, the business has developed a three-year strategy that involves expanding its local production and developing an ecosystem similar to Apple's. The goal is to improve supply chain localization by encouraging more international supply chain partners to set up activities in India.

Muralikrishnan B, President of Xiaomi India, stated that the company's local production approach combines imported and indigenous supplies.

"Almost 50-60% of the non-semiconductor bill of materials gets sourced locally which includes mechanics, fingerprint and camera modules, and more," he said.

Furthermore, Xiaomi India intends to restore market share across a variety of product categories over the next three years. The company's revenues fell after topping the market for five straight quarters until the end of 2022.

"Our three-year strategy for India includes changing buyer perception in premium price ranges, create a complete device ecosystem, and focus equally on online and offline sales channels," he said.

This plan appears to be working, as the company's shipments increased by 29% in the first quarter of this year.

Considering the government's investigation of Chinese smartphone firms for tax evasion and potential money laundering, Muralikrishnan declined to comment on whether Xiaomi is looking for an Indian equity partner to keep operating in India. He also abstained from discussing a letter written to the central IT ministry on how to better localize its operations.