The new facility, which is expected to provide direct employment to about 2,000 people, will meet the huge demand of mobile devices in the country. It will provide consumers with state-of-the art products at competitive rates.
"India's position, at the heart of a rapidly growing mobile communication region, makes it an attractive option for establishing our new manufacturing facility here," Mr. Pekka Ala, president of Nokia, said.
As per the plan, the company will finalise the site for the manufacturing plant and other pre-requisites like logistics by the first quarter of 2005. Nokia has targeted to roll out its first handset from the Indian facility by the end of 2005 or early 2006.
The company will manufacture all types of handsets, from the entry level to high end in both, GSM and CDMA, technologies. The new facility will also explore export possibilities. However, no decision has been taken on this matter.
Nokia's indigenous production of mobile handset will make it the first global company to offer consumers locally manufactured handsets. Korean company LG has also announced that it will start the manufacturing of handsets here.
"Volumes have changed in India and this is the key reason behind setting up the manufacturing facility here. This will be Nokia's 10th facility across the world," said Mr. Ala.
Nokia is negotiating with its key component suppliers across the world, who are already working with them at other manufacturing facilities, to join hands with Nokia in setting up the facility.
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