Amazon has announced that it will start manufacturing Amazon Devices in India later this year. The e-commerce giant is the latest in the growing list of companies announcing plans to set up a manufacturing base in India. Smartphone makers such as Apple, Samsung, Xiaomi and others already build their devices in India.
As part of the ‘Make in India’ initiative, the government has also announced a PLI scheme to boost local manufacturing in India. Now, Amazon is joining others and will soon begin manufacturing Amazon Devices in India. The announcement comes at a critical juncture for the company, which will see its founder Jeff Bezos transition from CEO to Executive Chairman role from the third quarter of this year.
Amazon will start making Fire TV Sticks in India
Amazon India is joining hands with contract manufacturer Cloud Network Technology, a subsidiary of Foxconn in Chennai to start production in India. This will be the first device manufacturing line for the company in India.
We’re excited to announce our 1️⃣st device manufacturing line in India & contribute to the #MakeInIndia initiative.
— Amazon India News (@AmazonNews_IN) February 16, 2021
A released statement notes that Amazon will be “able to produce hundreds of thousands of Fire TV Stick devices every year.” The release also explicitly mentions that local manufacturing will help meet demands of customers in India. Depending on the domestic demand, Amazon plans to further scale capacity to additional marketplaces or cities.
“Our Government’s decision to launch a Production Linked Incentive (PLI) Scheme has received tremendous response globally. We welcome Amazon’s decision to set up a manufacturing line in Chennai, as it will enhance domestic production capacities, and create jobs as well,” Ravi Shankar Prasad, Minister for Communications, Electronics & Information Technology and Law & Justice, Government of India said in a statement.
“We have pledged to invest $1 billion to digitize 10 million small and medium businesses, help Indian businesses sell worldwide thereby enabling $10B in cumulative exports, and create an additional 1MM jobs by 2025. Today, we are delighted to announce Amazon’s first manufacturing line in India to produce hundreds of thousands of Fire TV Stick devices every year catering to the demands of the Indian customers,” said Amit Agarwal, Global SVP and Country Leader for Amazon India.
Amazon is engaged in a fierce battle with Walmart-owned Flipkart and Reliance’s JioMart on the e-commerce front. To counter threats, it has introduced a number of initiatives including programmes to bring local businesses to its online shopfront. However, the commitment to build devices locally will be seen as one of the biggest as the government tries to turn India into an alternative for those looking to move away from manufacturing in China.