Make-In-India: Xiaomi supplier to open smartphone plant near New Delhi

Xiaomi's supplier Dixon Technologies is all set to open a massive new factory on the outskirts of New Delhi.

As per Bloomberg, Dixon will invest more than Rs 4 billion ($48.2 million) over three years in the factory, which will be spread over more than 300,000 square feet or the size of six football fields. The factory will largely produce Xiaomi smartphones. The report further said that the plant will be inaugurated by a government official toward the end of this month.

Also Read: Foxconn plans to set up one more plant in Tamil Nadu with $200 Million investment: Report

Amid India's pushes for local manufacturing, Xiaomi has partnered with India-based Dixon for smartphone assembly. With this, Xiaomi's older suppliers in India that includes Taiwanese Foxconn Technology Group’s Bharat FIH and China’s DBG Technology Co are set to lose some business.

As per Bloomberg, Xiaomi was once an unrivaled leader in India’s smartphone market, but lost steam after facing heightened regulatory scrutiny and overexpanding its product portfolio — which by its own admission confused customers.

This partnership with Xiaomi also comes as a big opportunity for India based Dixon which has been looking to replace the likes of Foxconn in the country.