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Motorola plans manufacturing unit in India

Motorola said it will consider manufacturing in India to comply with the eligibility criteria of deals with BSNL and MTNL.

business Updated: Aug 25, 2005 12:34 IST

Global mobile equipment maker Motorola on Thursday said it will consider manufacturing in India to comply with the eligibility criteria of deals with state-run carriers like BSNL and MTNL but remained non-committal on any immediate plan in this regard.

"We are not closed to it. We will consider manufacturing here. We will do everything to comply with the tender conditions of the PSU telecom carriers... But that will be when and in what shape, size and form, I can't say at this point of time. Our focus is to gain significant market share here and attain a critical mass", Edward Zander, chairman and chief executive officer of Motorola, said in New Delhi.

India, with a mobile user base of 5.9 crore, is one of the fastest growing wireless markets in the world and is currently adding about 25 lakh subscribers every month.

According to a proposed government policy, vendors would need to have local manufacturing facilities to be able to bid for tenders of PSUs like BSNL and MTNL. BSNL alone is close to finalising a Rs 13,000 crore tender for its 40 million GSM mobile project.

A number of multinational vendors of mobile telephony equipment, including Nokia and Ericsson, have announced plans to start manufacturing in India.

Zander said to gain a major market share, Motorola would look at "connecting the unconnected" by launching handsets costing below Rs 2,000.

The company has already launched one such handset while another would be out by October. These handsets would be targeted towards low-end users and rural areas.

First Published: Aug 25, 2005 12:34 IST