Manu Jain, Xiaomi India’s Managing Director, stated that the company is expanding production capacity in the country to meet rising demand and that the company will engage with partners to participate in the government’s production-linked incentive scheme.
Xiaomi India announced on Monday that it has postponed plans to export from the country due to a surge in domestic demand following the COVID-19 lockdown.
All employees will receive a half-salary month’s as a hardship bonus, according to the company.
Xiaomi India Managing Director Manu Jain told PTI that the company is increasing production capacity in the country to meet rising demand and that it will work with partners to participate in the government’s production-linked incentive (PLI) scheme.
“There were plans to start exporting to many other countries by this year, by 2021, but the reality is that we are unable to meet even domestic demand. “Our priority is to meet local demand, and then we will gladly export,” Jain said.
Xiaomi dominated the smartphone market with a 27 percent market share in the fourth quarter of 2020, according to CMR India.
Apart from smartphones, Xiaomi also sells air purifiers, fitness bands, virtual reality headsets, and power banks in India.
“We want to make sure we can meet local demand first. It would be a little foolish on our part as a business leader… to export when I can’t even meet domestic demand”, Jain said.
The PLIs have been approved for Xiaomi partners Dixon and Foxconn.
It has also partnered with BYD and DBG for smartphones, and Radiant will help the company expand its smart TV capacity in India.
“A plant in Haryana near Manesar has already gone live with DBG. Our capacity has already increased by 20% since the DBG plant went live. By the end of May or early June, BYD (facility) should be operational. All of the phones and televisions that we sell in India are made in India,” Jain explained.
He stated that the company now has over 60,000 direct and indirect employees and that it will make every effort to ensure that all of its employees, as well as their family members, are vaccinated against COVID-19 to the extent that they are eligible.
In July 2014, the firm opened its doors with a six-person office.
According to Jain, the majority of Xiaomi’s segment leaders are under 30 years old and have no relevant experience, which has aided the company’s rapid growth by allowing it to operate innovatively.
He also stated that during the pandemic, the company did not deduct workers’ wages and would cover the cost of vaccination for all of them.