Chinese company LeEco on Tuesday became the latest to set up a manufacturing base in the country through a contract-manufacturing partnership with Compal Electronics, as it aims to gain a bigger share of the growing demand for smartphones.
As per plans, LeEco has signed a pact with Compal, which is also its global supplier to make 60,000 units a month now at the 2 lakh square feet facility set up in Greater Noida, near Delhi, LeEco COO Smart Electronics Business Atul Jain said. The company aims to increase the production to 2 lakh units a month by December, he said. In total, LeEco has invested about R50 crore for the current and the future assembly line, Jain said.
Currently, the locally manufactured smartphones will cater to the Indian market, and Le Eco plans to make the country as a local export hub as it expands to markets such as Russia and Indonesia. By making and selling in India, LeEco could see its net margins increase by 6%, Jain said.
The manufacturing units comes after the government had imposed a 12% duty on imported smartphones while locally made and sold phones do not attract the tax.
LeEco will now become the 39th company to make smartphones in the country following industry leaders Samsung Electronics, Micromax Informatics and Intex Technologies, who have also set up facilities to make smartphones in the country.