LeEco invests $7 million in manufacturing facility

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Chinese smartphone maker LeEco aims to manufacture two lakh units in India by the end of the current yearwith an investment of $7 million, COO Smart Electronics Business Atul Jain said in an interview.

The firm has entered into a contract manufacturing deal with Taiwanese firm Compal Electronics.

“We are formally starting making our phone in India. We have partnered with Compal for the facility and will start with the assembly of 60,000 units of Le2 model per month,” Mr. Jain said. This will be increased to two lakh units a month. Mr. Jain added, “We have invested around $5 million in the facility and will put in $2 million for automation.”

The facility, spread over 2,00,000 sq.ft, would provide employment to about 200 people, he said.

In the past one year, over 35 companies have set up mobile manufacturing facilities in India, generating 40,000 direct jobs and 1.25 lakh indirect employment.

“Handset manufacturing in India rose 185 per cent in value terms in 2015-16 to Rs.54,000 crore in value terms and is expected to touch Rs.94,000 crore this fiscal,” IT Minister Ravi Shankar Prasad said while inaugurating the facility. For Compal, this facility will mark its entry into India. Overall, this will be the company’s fifth manufacturing facility after China, Poland, Brazil and Mexico.