Mobiles & Tablets

Gionee to invest Rs 300 cr for setting up new facility in India in next 3 years

Rajalakshmi S | | Updated on: Apr 04, 2015
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Chinese mobile maker Gionee will invest Rs 300 crore for setting up a manufacturing facility in India in the next three years. This is part of the company's plan to Make in India.

The firm, which had sold 40 lakh mobile phones in the country in 2014-15, might go for contract manufacturing to kick-start the mobile production in the country.

A good number of the 10-12 new models it is planning to launch this year would be manufactured in India. “If our plans go well, we will start manufacturing sooner and put in all the investments in the next year,” Arvind Vohra, Country Chief Executive Officer and Managing Director of Gionee India, told BusinessLine here on Friday.

Gionee launched the 'slimmest' phone S7 in the Indian market on Saturday.

The firm has appointed E&Y to advise it on setting up a manufacturing facility, which might produce phones for the countries near by.

Arvind, who has 26 per cent stake in the Indian arm, said the company would generate funds internally for its expansion plans.

Marketing investments

As it targets a turnover of Rs 6,000 crore in 2015-16, the firm has almost doubled its marketing investments to Rs 225 crore for the year and lined up big ticket cricketing and football sponsorships.

Gionee has a market share of 4 per cent in the country. Its share is highly skewed in different markets, with Rajasthan topping the list with 20 per cent and Gujarat with 9 per cent.

As it plans to sell 50 per cent more mobile phones (to 60 lakhs from 40 lakhs) this year, it has increased its marketing investments from Rs 132 crore to Rs 225 crore. About 23 per cent of the 40 phones are feature phones that contribute nine per cent to the company's turnover.

Published on January 23, 2018

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