Xiaomi to inaugurate production facility in Pakistan on March 4
KARACHI: Xiaomi’s mobile device manufacturing facility has scheduled an inauguration ceremony on March 4 to kick off production in Pakistan to generate a likely sales volume of 550 million in the country.
Xiaomi, one of the largest smartphone companies in the world, would begin production in collaboration with Select Technologies (Pvt) Limited, a wholly owned subsidiary of Air Link. The production facility has been established at Quaid-e-Azam Industrial Estate, Kot Lakhpat.
The Chinese giant with the local partner is expected to generate a sales volume of 550 million annually in Pakistan. “This production facility is a step forward in the direction of PM’s vision of ‘Make in Pakistan’ and will have a huge impact on Pakistan's economy resulting in export of locally produced Xiaomi mobile phones,” read the company's statement on the Pakistan Stock Exchange.
Xiaomi is a global technology giant with a current standing of 334 in the Fortune Global 500 companies. It became the second largest mobile phone manufacturer last year, surpassing Apple at that time and is currently number one in Europe and many other major markets including India. Xiaomi made a record 190.4 million smartphone shipments in 2021.
President Pakistan Dr Arif Alvi is expected to inaugurate the production facility near Lahore. Last year in November, Air Link announced that it would be partnering with Xiaomi, which would add approximately $450 million annually in top line revenue numbers.
Air Link has also been manufacturing TCL, ITel and Tecno cell phones in Pakistan. The company says it is one of the largest distributors of mobile phones in Pakistan with a nationwide network linked with over 1,000 wholesalers and 4,000 retailers. Air Link has praised the government’s Mobile Device Manufacturing Policy, which has helped assembling in the country and subsequent ability to export. It said that this policy was the reason for them to enter in the manufacturing business.
The policy has enabled assemblers to import semi-knocked down units and assemble them in Pakistan paying negligible duties and taxes. Previously, imported smartphones were taxed at around 20 per cent to 25 per cent.
The company’s share price nearly increased by four per cent on Monday, when it shared this information with PSX. Its stock price moved from Rs54.75 to Rs56.87. Meanwhile, Adviser to Prime Minister for Commerce and Investment, Abdul Razak Dawood informed that RealMe mobiles has also started producing mobiles locally at their unit in Lahore.
“I would like to congratulate RealMe mobiles which has started producing mobiles locally at their unit in Lahore. This has not only created employment but it has also decreased the cost of their locally made smartphones,” Dawood tweeted on Monday.
“The new development aligns with MOC's (Ministry of Commerce) Make-In-Pakistan policy of promoting industrialisation and import substitution,” he added. Chairman, Engineering Development Board (EDB), Almas Hyder said that 30 companies took permission to set up mobile assembling plants and out of the 30, 19 companies have already started assembling. “We are expecting the remaining companies would also soon be starting their operations at their respective plants,” Hyder said.