Microsoft Devices to import phones from Vietnam

India’s loss is Vietnam’s gain. Microsoft Devices will now import phones from the Hanoi (Vietnam) factory instead of the facility owned by Nokia in Chennai

However, the company said that it may consider buying from India facility in future.

“We are good with whatever sources supply the products. Today it is Hanoi, tomorrow, it could be anywhere. We don’t know yet at this point in time and right now we don’t have any plans that we can share,” Ajey Mehta, Managing Director, Microsoft Devices, told Business Line in a recent interview.

“Depending on which factory is churning out what product…that is something that the operations team is constantly re-looking and re-working on,” he said.

He said the company has got other factories around the globe and depending on the capability of the factories, would make devices that sell in India.

“Chennai factory, as you know, did not get transferred (to Microsoft) so products are coming from Hanoi,” Mehta added.

Nokia Corporation had urged the Narendra Modi Government to quickly resolve the pending tax issue so that it can sell the mobile manufacturing unit in Chennai. In an interview with BusinessLine in September, Nokia’s President and Chief Executive Officer Rajeev Suri had said that the company did not need the factory as it was no longer in the mobile phone business post the deal with Microsoft.

“We would like to sell it so India has an opportunity to have a strong mobile manufacturing ecosystem in place,” he had said.

While the Modi Government is campaigning around ‘Make in India’ project, many foreign companies in the electronic manufacturing are sceptical about starting a factory in the country because of the Nokia issue.

However, to ensure its success the Government must also take steps to enable clear regulations and self-declaratory compliance in addition to a uniform labour code, said analysts.

“There are serious skill gaps that need to be addressed to realise the complete benefits of this initiative (Make in India),” Moorthy K Uppaluri, Chief Executive Officer, Randstad India (a recruitment company) said.

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