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Working on thin margins and scarce human resources, indigenous handset manufacturers are toying with the idea of setting up a hub in Hyderabad to build a strong ecosystem. They have started scouting for suitable land in one of the three electronic hardware parks being developed by Telangana.
“We are working on a concrete proposal to submit to the Telangana government. We are planning to submit a detailed report to it, clearly indicating what we want to do and what kind of support we expect from the government,” an Indian Cellular Association told BusinessLine .
“You need to have a strong ecosystem to have a viable handset manufacturing facility. We are lacking in quality workforce, component makers and other relevant things that go into making a handset. This has become a major hurdle in developing manufacturing facilities in the country,” he said.
An ICA delegation, led by its President Pankaj Mohindroo, held discussions with Telangana Chief Minister K Chandrasekhara Rao on Wednesday to discuss the proposal to set up a common hub. Earlier, the delegation visited a probable site to set up the hub.
“We may go for some individual units and shared facilities. This will help not only in reducing overheads but also build ancillary units that play a crucial role in building a successful handset manufacturing facility,” he said.
“We are in talks with mobile manufacturing firms. We will hear some good news shortly,” IT Minister KT Rama Rao said.
Two clusters The State has developed two electronic manufacturing clusters on 900 acres near Hyderabad. It set a target to double the revenues to ₹12,000 crore from electronic hardware industry in the next five years.
The Minister said the government was keen to make inroads into the hardware industry after emerging a top destination in the software services industry.
“Realising the acute shortage for workforce for the hardware industry, we are planning to train about 15,000 youth exclusively for this sector,” he said.
Celkon Mobiles has been planning to set up its manufacturing base in one of the two Telugu States.
Hyderabad already is home for a couple of tablet firms. Canadian tablet maker Datawind had roped in QUAD and, then, VMC Systems to manufacture its low-cost tablets. Bizzbook, one of the first native tablet maker, too is based out of the city.
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