Holitech, a components supplier for the Chinese mobile phone maker Xiaomi has decided to setup a production facility at Tirupati in Andhra Pradesh at the cost of Rs 1400 crores, Financial Express has reported. Holitech will be manufacturing touch panels and camera modules for Xiaomi.

The 75-acre facility is expected to start production in first quarter of 2019 and will employ close to 6,000 people in next three years. The Holitech CEO Guisheng Chen informed reporters that the plant would be set up in two phases. “The facility will cater exclusively to Xiaomi,” he said. He added that the facility will have a capacity of 50 million components after completion of Phase I and 100 million components at the end of Phase II.

To encourage its component suppliers to begin producing in India, Xiaomi had held a global suppliers meet in Delhi in the month of April. The company had said that its suppliers would bring in investments of Rs 15,000 crore and create 50,000 jobs. “We are committed to Make in India and our intent is to get our partners to also manufacture locally here,” Xiaomi Vice President and India Managing Director Manu Jain has told the media.

Jain further added that the localisation of components would bring down the cost of mobile phones. Holitech currently has 16 factories in China and Taiwan and employs 30,000 people. Its big foray into India is another major step in making India a global hub for mobile phone manufacturing.

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