The report claims that Flex has a capacity of manufacturing around 4-5 million devices per month. It has a factory located in the special economic zone (SEZ) near Chennai
A report by a leading media daily ET (Economic Times) has claimed that Mukesh Ambani’s Reliance Jio Infocomm is in talks with a US based company to produce 100 million mobile handsets in India. The telecom is probably seeking to capture more market share by using feature phones.
ET reported that a person familiar to the matter said that Jio’s advanced discussions for a large mobile phones order has caused a stir in the market. The development may have also prompted mobile phone manufacturer Flex to negotiate some tax benefits with the government in the SEZ near Chennai.
Flex mobile phone factory in SEZ near Chennai
Flex’s SEZ located factory near Chennai, as per the report, has a capacity of manufacturing around 4-5 million devices per month. “The company is looking forward to be able to sell the produced units in the domestic tariff area without attracting the duties, at rates similar to that of FTAs,” the report said.
Data sourced from Flex website claims net sales of the company during the current quarter to be a staggering $6.7 billions. The company has manufacturing operations in approximately 40 countries.
Wikipedia page of the company claims it to be headquartered in Singapore, with administrative offices located in San Jose, California. The page also claims that it employs approximately 200,000 employees, globally.
A report by research firm Bernstien had earlier suggested that Reliance Jio’s phone subsidy model can help the telecom lead the market in the future, if in case its rivals fail to match up.
The report said, “If left unchallenged, we believe Jio could reach the leading revenue market share by 2021 and by subscribers by 2022. We now expect Jio to reach 28% revenue market share and 26% subscriber market share by the end of this financial year.”