NEW DELHI: In a significant decision in the face of government’s unrelenting pressure on Chinese companies to localise operations, consumer electronics and smartphone company Xiaomi has decided to completely source audio products from Noida-headquartered contract manufacturer – Optiemus Electronics.
“For Xiaomi, the partnership with Optiemus marks our entry into ‘Make in India’ in a completely new segment and category. We feel that this is an important category to invest and grow in, and this partnership will help us achieve our targets with an Indian company,” Muralikrishnan B, president of Xiaomi India, told TOI. “For us, this partnership for audio products could be the first of many such initiatives with Optiemus. We will like to build on further on this commitment. The opportunity that we have here is as big as we had in smartphones at one point in time.”
The audio category is dominated by local brands such as Boat and Noise, apart from premium players such as Apple, Samsung and Sony. Xiaomi feels that demand for headphones, truly wireless sets and other audio products will continue to remain strong and there will be demand in the mainstream, mass category.
Nitesh Gupta, director of Optiemus, said the partnership with Xiaomi will help the company gain global quality products standards, apart from quality manufacturing processes. “This is beyond a sourcing arrangement. It’s a partnership that will only strengthen with time.”
Like Apple, Xiaomi does not make its products, rather outsources them to third-party manufacturers after designing and working on their architecture. These include TVs and smartphones. Murali said that while domestic value addition on its products is around 20% currently, this would increase to around 30% over the next two years.
“For Xiaomi, the partnership with Optiemus marks our entry into ‘Make in India’ in a completely new segment and category. We feel that this is an important category to invest and grow in, and this partnership will help us achieve our targets with an Indian company,” Muralikrishnan B, president of Xiaomi India, told TOI. “For us, this partnership for audio products could be the first of many such initiatives with Optiemus. We will like to build on further on this commitment. The opportunity that we have here is as big as we had in smartphones at one point in time.”
The audio category is dominated by local brands such as Boat and Noise, apart from premium players such as Apple, Samsung and Sony. Xiaomi feels that demand for headphones, truly wireless sets and other audio products will continue to remain strong and there will be demand in the mainstream, mass category.
Nitesh Gupta, director of Optiemus, said the partnership with Xiaomi will help the company gain global quality products standards, apart from quality manufacturing processes. “This is beyond a sourcing arrangement. It’s a partnership that will only strengthen with time.”
Like Apple, Xiaomi does not make its products, rather outsources them to third-party manufacturers after designing and working on their architecture. These include TVs and smartphones. Murali said that while domestic value addition on its products is around 20% currently, this would increase to around 30% over the next two years.
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