India is the second-largest market to smartphones, and the handsets have found, for decades, a credible pool of buyers in the country. Xiaomi, Samsung, and Oppo are among those brands that have resumed the operation within their smartphone production units in India.
These companies have got permission to resume production partially. Thus, manufacturing will start to take place in the multiple plants located inside the country. The companies are enthusiastic to begin after a long period of shut down. The government had enforced the shutting down in the wake of the difficult conditions caused by the spread of the virus.
As the state governments in various parts of the country give the nod to these Multinational Companies, after a period of intense lockdown, the strict measures are getting relaxed. In late March, the govt. I had decided to shut down the operations at various manufacturing units all over the country and ordered the companies as per the considerations.
Though the permit has been granted to these MNCs from the state governments, there shall be a host of measures in place. As a first, the brands will be allowed only to have limited strength. Thus, not all of their workforce shall be employed and working at the plants that have been reopened. The work will certainly see resumption, but that is expectedly going to be slow.
The central government had allowed the companies to resume their operations, but they needed to secure permits from the state governments as well. The central government had given the nod to the operations just after the second lockdown was put in place. India has a plethora of orange and red zones, and thus, it is only fair for the state governments to have the final say.
A plethora of production units is gradually dotting the green and orange zones that have been allowed to have manufacturing units opened and functional. The same is very important to revive economic activity. There is a limit to the state’s decision to refuse the functioning of the crucial manufacturing sector, after all.
The problems of procuring raw materials and add-ons at several stages of the production process are insightful. Xiaomi, for instance, stated that it had limited inventory, that too, only for meeting the demand for up to three weeks. In Apple’s case in Bangalore, the iPhone maker has already started production. Samsung will also restart work in the world’s biggest manufacturing plant located in India.
Vivo that happens to be the second-biggest handset selling company in India said that it would be working with just 30 percent of its total strength. Treading along the same line, Oppo also said that it would resume the operation and production at its Greater Noida plant with around 3,000 employees.
An estimate from Counterpoint gives very valuable inputs in that the smartphone shipments in India will get reduced by 10 percent this year, as opposed to an 8.9 percent growth in the previous year. The same sector had witnessed a 10 percent growth in the year 2018.
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