According to market research firm CyberMedia Research(CMR), Samsung, Rising Star and Intex are India’s top 3 Original Equipment Manufacturers(OEMs) for the fourth quarter of 2016. As can be seen in reports there is a need to strengthen domestic brands in manufacturing with intentions on bringing design and engineering to India as well.
According to CMR, 48 OEMs and third party manufacturers made mobile handsets in India during Q4, 2016, while the rest 140 ODMs supply to brands selling in India. OEMs are the original manufacturers, while ODMs are Original Design Manufacturers, which design and manufacture phones, which are then branded and sold by another smartphone company. According to CMR report, ODMs are dominating the Indian mobile market. Under 4K range, Intex leads smartphone, while Samsung is on top of the list in the range from 4K-8K and as well in 15K-20K. Rising Stars Mobile India leads in the 10K to 15K range. This OEM manufacturers phones for Asus, Gionee, InFocus, Microsoft, Oppo, and Xiaomi in India. Hong Fu Ji Precision Electronics is leading in the above 20K range; this is a subsidiary of Foxconn.
“The positive thing about ‘Make in India’ of attracting foreign OEMs to assemble/manufacture in India has been progressively achieved. However, at the same time, it has not resulted in strengthening of domestic brands. There is a need to revisit the initiative that focuses on empowering domestic brands within the global trade regime,” said Faisal Kawoosa, Principal Analyst, Industry Intelligence Practice at CMR.
“CMR believes ‘MADE’ for handsets stands for Manufacturing, Assembling, Designing and Engineering, while the Manufacturing and Assembling have been taken care of, now we should gear up for designing and engineering to complete the acronym MADE,” he added. According to Faisal, this can be achieved by supporting domestic brands, and giving impetus to local manufacturing and design. “Otherwise, we are seeing non-local brands, especially from China, gaining market at the cost of Indian brand share,” he pointed out.
As per the report, Samsung is the leading ODM for overall mobiles as well as smartphones in India. Rising Star is the leading third party manufacturer, while Intex and Vivo are the other two ODMs making to the top three lists of overall handsets and smartphones respectively. Top global ODMs manufacturing handsets for India market are Shenzhen Tecno Technology which manufactures for Itel, Samsung Electronics (Huizhou) and Shenzhen Benavi Electronics Co Ltd, which manufactures for Micromax and Zen.
“Make in India has surely helped to pull the crowd and the numbers are quite encouraging for the country. In fact, the ratio of domestic and import shipments today stands at 66:34. But now the only concern remains to reduce the global imports, which is possible with government’s intervention. Apple’s manufacturing plans would further improve the current scenario,” said Krishna Mukherjee, Telecom Analyst with CMR in a press statement.