HTC pledges to “Make in India”

Indian Prime Minister Narendra Modi’s ambitious “Make in India” initiative had a new entrant in office today. HTC, the Taiwan based smartphone manufacturer is all set to go with its ‘Make in India’ plans.
 
HTC has now entered into a pact with Global Devices Network (with manufacturing and assembling unit in Noida) to make handsets on contract. By virtue of which it becomes the second major global smartphone maker (after Samsung) to produce handsets in India.
Commercial production of units is expected to start from mid-July, initially  catering to HTC’s Indian requirements in the beginning.
 
Global Devices Network, which produces smartphone for Zen and distributes Samsung smartphone, Managing Director Mr. Nitesh Gupta confirmed the company is in talks to start commercial assembling of HTC to make handsets on contract, which should be finalized by next month. “It’s a contract manufacturing agreement,” he said, declining to share further details.
 
HTC is also expected to set up its quality control unit in the contract manufacturer’s plant. Targeting entry-to-mid-segment smartphones, HTC has of late expanded into contract manufacturing to slash costs, however it retains the production of almost all its high-end models. 
 
Media Reports say HTC has tied up with third-party manufacturers in Taiwan and China and the India plan too falls in the same line. The Indian manufacturing, will fetch a duty differentiation of 6% to 6.5% for making in India, HTC will also get access to a big market and labor”.
 
World’s leading smartphone makers such as Sony, LG, Xiaomi and Motorola, too, have shown interest in manufacturing in India due to the exemplary growth potential of the country’s smartphone market and not to miss the tax benefits available part of ‘Make in India’ policy. Research firm Gartner expects Indian smartphone sales to grow by 40% in 2015, contributing to over 38% of overall mobile phone sales, up from 27% in 2014.

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