The Hindu Business Line : TN plant is Nokia’s fastest growing handset-maker

“We have two manufacturing units in China so there is a precedent. India is similar to China in terms of the market size and, therefore, we do not see any reason why we cannot have another plant in India one day. We may look at it.”

Thomas K Thomas

New Delhi, Oct 25 Riding on a surge in mobile usage in the country, Nokia’s handset manufacturing unit in Tamil Nadu this week reached production volume of 200 million handsets.

The target has been achieved within just three years of launching the facility at Sriperumbudur, about 50 km west of Chennai, making it the fastest growing unit for Nokia globally in terms of handset production.

Employee strength

The manufacturing facility, with over 8,000 workers, is already Nokia’s largest plant in the world in terms of employee strength.

Mr David Cheung, Vice President, Volume Operations, Markets told Business Line: “The factory in Tamil Nadu has performed beyond all our expectations and projected targets. This is not just in terms of the output or the number of units but also when it comes to best practices and the commitment of the workers.”

Nokia had rolled out its 125 millionth handset from the TN plant in March this year.

Plan for second one?

When asked whether Nokia plans to set up a second unit in India, Mr Cheung said: “We have two manufacturing units in China so there is a precedent. India is similar to China in terms of the market size and, therefore, we do not see any reason why we cannot have another plant in India one day. We may look at it.”

Nokia has invested close to $285 million in the plant till now.

Approximately 50 per cent of its production at Sriperumbudur is consumed domestically and the rest exported to countries across West Asia and Africa, rest of Asia, Australia and New Zealand. “India’s proximity to markets in West Asia and Africa has made the manufacturing facility near Chennai a global hub for Nokia,” Mr Cheung said.

Hardware production

On China being a more attractive destination for hardware manufacturers compared with India, Mr Cheung said: “We need to be patient. China has not become a manufacturing destination overnight. India is on the right track in this regard. However, the Indian Government should focus on creating better infrastructure such as power, road, transport and better education to attract more investments. There should also be emphasis on meeting the aspiration levels of the workers in the manufacturing units as their income improves and demand rises.”

High-end sets

Asked why Nokia does not manufacture high-end mobile handsets in India, Mr Cheung said the product portfolio was decided keeping in mind the needs of the local market.

“Nokia does not have a single factory where all the products are manufactured. We want to achieve the best cost-efficiency by spreading the production across various facilities. But that does not mean that the Indian unit will not move up the value chain,” he added

More Stories on : Telecommunications | Performance | Tamil Nadu

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