Low-cost smartphone maker to launch in AP

Andhra Pradesh will manufacture low-cost smartphones as the government’s low-priced Akash tablet makers Datawind has decided to set up a manufacturing facility in the state.

Canada-based Datawind has recently ventured into low-cost smartphones manufacturing and has a plant in China. The manufacturer has plans to set up manufacturing facilities in Amritsar, Central India and AP.

Datawind aims to manufacture 50 lakh handsets per annum at all the three proposed units.

The Toronto Stock Exchange listed company will submit a detailed proposal to the state government in the coming weeks.

“There is a sudden rush to India from many mobile phone manufacturers, who, until now, had manufacturing facilities in countries like China. Thanks to the Modi government, various duties on cellphone parts that are imported from other countries to be assembled or manufactured here have been reduced to zero from 28 per cent. Duty on a finished imported phone was only 6 per cent which has been raised to 13.5 per cent now. This actually gives a boost to the Prime Minister’s ‘Make in India’ campaign in the cellphone manufacturing sector. Now parts can be brought into India duty free and assembled or manufactured here,” said Datawind CEO Suneet Singh Tuli on Wednesday.

He added that with the ‘Make in India’ slogan, his company has decided to shift its manufacturing to India within 90 days.

Datawind, which entered the Indian market introducing low-cost tablets three years ago, has 50 to 55 per cent market share in the entry level tablets — that costs less than `5,000market in the country.

Last month, the Canadabased company had entered the smartphone market with manufacturing low-cost touchscreen phones, priced at `2,000, `3,000 and `5,000 with a tie-up with Reliance Communications for internet access.

“One can browse unlimited internet for 12 months absolutely free on Datawind dual sim smartphone. We will set up one manufacturing unit in AP and we are looking at the state’s IT policy. Our manufacturing facilities can provide direct employment to 1,000 and some more thousands indirectly. We are yet to decide where to set up the facility, Vijayawada or Vizag,” said Mr Tuli.