Sony Ericsson, a leading Japanese-Swedish mobile handset maker, is all set to produce its mobile handsets in Sriperumbudur through manufacturing agreements with Flextronics and Foxconn -- global manufacturing outsourcing partners of Sony Ericsson.
Both Flextronics and Foxconn have already set up their operations in Sriperumbudur to make mobile handsets and telecom equipment.
With this announcement, the world's top five mobile handset makers -- Nokia, Motorola, Samsung, Sony Ericsson and LG -- will be manufacturing their products in India.
Nokia and Motorola have already set up manufacturing units in Sriperumbudur, which is emerging as a telecom manufacturing hub near Chennai.
Miles Flint, president, Sony Ericsson Mobile Communications, said the manufacturing plan was part of the company's strategy to deepen its commitment to the Indian market, which was one of the fastest growing markets for Sony Ericsson.
Sales in India tripled last year and the company claims to have tripled its market share in the GSM market from three per cent in 2003 to 9 per cent last year.
Initially, the company plans to manufacture basic colour phones and mid-level music enabled phones, where the company is reported to have gained popularity.
He declined to provide details on initial production capacity, but indicated that the annual production capacity in India was expected to reach 10 million by 2009. Sony Ericsson has been importing mobile phones from a Flextronics facility in Malaysia. The company commenced its Indian operations in 2002.
Local manufacturing in India was expected to provide cost efficiencies and would enable the company to offer attractive models at competitive prices, he said, adding that the company would introduce stylish designs with local content and customised features.
The manufacturing agreement with Flextronics and Foxconn in India will be an extension of the existing relationship with these two companies to make mobile handsets in other parts of the world.
The $11-billion Sony Ericsson, a joint venture between Sony Corporation of Japan and Ericsson of Sweden, chalks up two-thirds of its production though contract manufacturing.
Maran said the country was adding 7 million new subscribers every month and the total subscriber base in India was expected to touch 200 million by the end of February.