Hyundai to set up mobile phone plant in India, lines up $ 50mn over 5 yrs

Hyundai to set up mobile phone plant in India, lines up $ 50mn over 5 yrs

Author | exchange4media News Service | Saturday, Dec 18,2004 8:51 AM

Hyundai to set up mobile phone plant in India, lines up $ 50mn over 5 yrs

Hyundai India Telecom Limited (HITL) is soon going to set up a manufacturing plant and R&D hub in India with overall investment to the tune of $ 50 million over a period of five years. This decision came in subsequent to the receipt of the license from Hyundai Korea Corporation towards this objective.

HITL will manufacture the entire range of hi-end mobile phone handsets for both the GSM and CDMA platforms. According to the company, 50 per cent of the output would be earmarked for the domestic market, while the rest would cater to the international markets, primarily in the Asian and SAARC belt. A global R&D unit is also being planned to create user-friendly applications addressing the needs of a wide spectrum of mobile handset users particularly in the region.

“Mobile penetration per household is increasing at an exponential pace. The demand for cutting-edge mobile handsets that is user friendly and economical is growing and there is a huge replacement market for colour, camera, and hi-end PC-PDA phones. We feel, we can create newer segments and markets by setting up a manufacturing and R&D hub here in India. This would also help us feed supply through exports to the highly potential markets in the SAARC and Asian regions and other International markets,” said Vijay R Singh, Vice Chairman and Managing Director, HITL.

The production facility will have five assembly lines for both CDMA and GSM mobile phones with a daily production capacity of 4,000 handsets. Production capacity in the first year would be up to 12 lakh handsets per annum.

Additionally, HITL has plans to invest around three to five per cent of its turnover towards research and development of products for both its GSM and CDMA-based handsets. The company also intends to focus on PDA and Smart phone mobiles and plans to introduce the latest range of other synergistic 3G Mobiles products.

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