Nokia to surge its localization in India to 45 percent in next three years

Finland-telecom giant Nokia plans to increase their localization in India from 20 percent to 40-45 percent in next three years, announced the company at an event that marked to celebrate the completion of 20 lakh production milestone of the Nokia Network, its Chennai factory. The company is also in discussion with their global vendors to set up facilities in the country.

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“The facilities would help the company in improving the supply chain management. The company is looking at localizing the mechanics side of the business,” Karl Kirschenhofer, vice president, manufacturing operations, Global Operations – MO, Nokia Network said. Currently, most of its vendors are present in China.

Setting up facilities in India will enable the company to bring down the cost of production. “The long-term purpose should be to bring more of the supply chain in India, mentor and train entrepreneurs so that the supply chain gets more and more indigenized and the cost of production goes down,” added Amitabh Kant, secretary, Department of Industrial Policy and Promotion (DIPP) present at the event.

The company has not yet decided any place to set up its manufacturing facilities.

Being a company that currently focuses on standardization of 5G network, which the firm expects to roll out by 2018, it has many new technology products to manufacture. With an employee base of 1,200, Nokia Network, Chennai, the Indian arm of Nokia Corporation, it is one of the largest manufacturing units in the sector of Indian telecommunications. Chennai centre is a strategic hub for Nokia global operations.