The Canadian company DataWind a low cost manufacturer of mobile devices signed an MoU with the Telanagana government to manufacturer 20 lakh smartphones in the state with an initial investment of about Rs 100 crore. The CEP of the company stated that production would start in little as 90 days that will generate 500 jobs in just the first phase of the manufacturing plant.

The state of Telangana is growing and attracting investments by companies worldwide and leading the country with the most startups. DataWind becomes the latest company to use the resources provided by the state.

Suneet Singh commented on the vision of the state, ‚ÄúTelangana is happy to invite investments in the state. We are happy that the company who connected the forgotten billions to the digital age has decided to put up their manufacturing unit in Hyderabad.”

Suneet Singh told reporters, “Between capital investment and working capital, we will allocate Rs 100 crore for setting up a new facility. Within the first three or four months, you would see that investment happening. The initial 500 jobs will happen right in the initial stages of first two-three months,”

In order to provide low cost mobile devices DataWind’s focus appears to be vertical integration of the manufacturing process. The method of production lowers the end cost and brings it to the optimal position in the long run average cost curve.

He added, “Across the board… we will do (produce) tablets, smartphones, end networks… Over time, we will also set up touch panel manufacturing facility so that we are vertically integrating the components that we manufacture.”

The plant will be the second of Datawind in the India and part of the Make in India campaign of Narendra Modi.

The company launched the most affordable 4G LTE smartphone priced at only rs 3,000 with 1 year free internet from Reliance and Telenor.

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