India second largest market for Nokia

NEW DELHI, INDIA: Nokia today announced that India has become its second largest market in terms of sales, going past the United States in the quarter ended June 2007.

Over the last three years, India has been gaining significant ground year-on-year moving from fourth position in 2005 to third position in 2006 and is today poised right behind China.

The company also announced that it has started exporting to 58 countries from its Sriperumbudur, Chennai manufacturing plant. Today, the factory has reached production volumes of 60 million handsets (August 2007) and is exporting half of its production to 58 countries across Middle East, Africa, Asia, Australia and New Zealand, Nokia said in a statement.

“India is playing an increasingly important role in the global economy buoyed by impressive economic growth, skilled manpower and tremendous business opportunity. As the market leader in devices and infrastructure, Nokia is committed to build the telecom ecosystem in the country and foster the creation of a favorable environment for collaboration and economic development,” said Olli-Pekka Kallasvuo, president and CEO of Nokia Corporation.

The factory currently employs 4700 people. The Nokia Telecom Park has received an investment of $500 million with seven global component manufacturers likely to generate in excess of 30,000 jobs when fully functional.

Nokia Siemens Networks has recently announced its plans to invest $100 million in India over the next three years as a part of its commitment to develop a strong telecommunications environment in India.

This investment would include setting up a proposed telecommunication equipment manufacturing facility in Tamil Nadu for wireless network equipment, new offices across various cities, additional development of an existing R&D center, and expanding the Global Networks Solution center.