Handset biggies mull Indian unit

M Chayya

KOLKATA: Mobile companies have been mulling manufacturing facilities in India for sometime now, but a concerted effort to encourage production of cellular handsets in India has just begun.

The Indian Cellular Association (ICA) is preparing a detailed report on creating a long-term production base for mobile handset makers. A committee to study the market is also on the anvil. The ICA’s detailed ‘position paper’ would give a comprehensive picture of the Indian market that would help mobile phone companies decide on investing in the country. The ICA is made up of members from major mobile phone manufacturers such as Nokia, Samsung, Sony Ericsson, Siemens, Motorola and LG.

The proposed committee to study the market would include representatives from the ICA, the mobile industry and ministries of telecom, commerce and finance.

According to ICA president Pankaj Mohindroo, India’s mobile handset market is expanding and at least three companies are considering setting up manufacturing units in India. But, he didn’t elaborate further.Nokia had reportedly decided to set up a production facility in India, but later shelved the plan because the market wasn’t big enough.

However, the Indian market is poised to grow significantly in light of reduction in duty. This has also helped reduce the grey market share.

The Indian handset market is estimated to cross $3.3 billion this year with the share of GSM phones being $1.8 billion followed by $1.3 billion for CDMA mobiles. According to ICA, steps such as reduction in duty on accessories, parts and spares would help the market grow further.

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