Xiaomi Sets Up A Second Factory In India, Manufactures One Phone A Second Now

Xiaomi has now partnered Foxconn to set up its second manufacturing unit in India. After setting up its first unit in August 2016, Xiaomi has been aggressive in expanding and customizing its products for the market, both hardware and software perspective. Officially, Xiaomi has a second factory setup in the Sri City in Andhra Pradesh, not Telangana.

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Owned and operated by Foxconn, Xiaomi’s new manufacturing plant is also in the Sri City, AP and is dedicated for Xiaomi smartphones only, where it manufacturers one phone per second. Both the plants combined give employment to 5000 people out of which 90% are women. With this second plant in the state of India, more than 95 percent phones selling in are made in India logo.

The plants have a production capacity of manufacturing one phone per second. Originally, Xiaomi entered the Indian market in July 2015 and announced its plan to set up a manufacturing unit in less than one year of operations with the facility going live in 2015 and by March 2016, 75% of the smartphones sold by Xiaomi in India were manufactured at the first plant. Xiaomi also been customizing its hardware and software productions for Indian market. For instance, the MIUI is available in 13 Indian languages till date.

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The announcement of the second Xiaomi’s factory was made on the sidelines of its Redmi 4A launch in New Delhi. While Xiaomi hasn’t given the exact capacity number of the plant, though claimed is was now manufacturing one phone per second in India. For Xiaomi, this might not be enough given the supply constraints it continues to face here. Most of the devices are sold out within seconds of becoming available online during the weekly flash sales.

However, Xiaomi India head and Vice-President Manu Kumar Jain said this is a problem they intend to solve. “The key for us was to start hitting one phone per second kind and we thought we will announce it only when we hit that number. Now we are hitting that consistently.

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But again, Jain admitted that with just one plant, Xiaomi was struggling to meet demand, as “We were already running at 100 per cent utilization, but we were not able to meet the demand. Even today, with Redmi Note 4, we have sold 1 million units in 45 days, but probably if we had more stock we could have sold more phones,” he added.

So far Xiaomi is selling four phones; Redmi 3S, which has two variants, Redmi 3S Prime is another, Redmi Note 4 which has three variants, Mi Max – has two variants and the flagship Mi5 phone from last year. Other than the Mi5 imported from China, Xiaomi says all of its phones are made in India.

Although being one of the fastest growing Chinese smartphone player in India, Xiaomi is the number one online band and has about 30 percent market share only in online segment. According to IDC, Xiaomi has acquired 10.7 percent market share in Q4 2016, climbing to the number two position.

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