In the next one year, the Chennai (Oragadam) centre of Nokia Siemens Networks (NSN) could be the company's biggest manufacturing hub in Asia, overtaking the China facility, according to a senior company official.

As of now, the Chinese facility is bigger in size but going by the expansion here, Chennai could possibly be the biggest in a year or so, said Mr Herbert Merz, Global Head of operations and Executive Board Member, Nokia Siemens Networks, a €12.7-billion telecom infrastructure manufacturer. However, both the Chennai and China units manufacture different products, he said.

Investing More

A point to prove on the growth was the fact that NSN, which is a 50:50 joint venture that combined Nokia's network business group and the carrier-related businesses of Siemens Communications, has invested more than its committed amount while commissioning the Oragadam plant in 2007.

The company then committed the Tamil Nadu Government that its investment in the Oragadam plant will be nearly $70 million and generate employment to around 500 people in three years. However, it has already invested $75 million in two-and-half years and provided employment to 1,250 people, Mr Merz told newspersons.

4th Generation mobile

Meanwhile, the company has expanded its Chennai facility to meet local and global demand. With a ‘remarkable' GSM footprint; a rapidly growing 3G market and the expected rollout of TD-LTE (4th generation mobile data connection), there is a strong demand for telecom equipment.

The facility will be expanded to 55,000 sq m from the present 35,000 and the number of product lines increased to 33 from 28.

Scope for more exports

The expansion will also increase exports from the plant. At present, the export is 37 per cent of the total production of 8.6 lakh units. Anything beyond the requirement for the domestic market would be exported, said Mr Merz without giving any projections. From Chennai plant, the company's products are exported to the US, Europe and also to some of the Asian countries, he said.

The Indian market for telecom infrastructure equipment was around Rs 19,000 crore of which NSN has a 30 per cent market, said Mr Ashish Chowdhary, Head of India and customer operations East, NSN, quoting an external agency. Serving close to 260 million Indian subscribers on its networks, NSN's clients include Aircel, Bharti, Defence, Idea, Railways, he said.

The expansion will enable the company to manufacture and distribute new ‘multi radio and LTE products, he said.

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