Xiaomi Inc. is setting up it’s second factory in collaboration with manufacturing giant, Foxconn, in Sri City, Andhra Pradesh. The new plant which is said to have a production capacity of 2 million units per quarter when it attains full production will double what the company currently makes. The plant is spread across 65,000 sq ft and has already started work but will need time to reach full capacity.
Xiaomi’s new plant will put the company in the list of top local phone manufacturers in India, giving them the fourth spot behind Samsung, Micromax, and Intex.
Xiaomi has always emphasised the importance of the Indian market to their success. In Xiaomi’s words ”India is their biggest international market”, and they have shown that with the speed at which they have setup manufacturing plants following the announcement of their intention last year to manufacture locally.
Stats say the company sells between 1 to 1.5 million phones per quarter with 75% manufactured locally. The top manufacturers, Samsung and Intex churn out 3 million and 2 million phones per month.
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Xiaomi is said to be the 3rd brand in offline sales with a market share of 8.1% behind Samsung’s 28.5% and Micromax’s 11.9% at the end of the the second quarter.
They have achieved this position by employing a direct-to-retail move which cuts out middle men and ensures they don’t have to pay large sums to distributors. Another key attributed to its success in the Indian Market is the success of the Redmi Note 3 which has sold over 1.5 million units since it’s launch this year but still suffers from insufficient stock.
Source: Economic Times [source]