CHENNAI: Mobile device maker Nokia has decided to pump in another $75 million during 2008 into its India facility at Sriperumbudur near here.

Booming demand

The announcement of fresh investment comes in the wake of a booming demand in the domestic market and rising shipments to overseas markets. The fresh fund infusion is intended to beef up the capacity of the plant at Sriperumbudur so as to cater to the burgeoning needs of the local as well the emerging markets. It is also meant to improve the product portfolio of Nokia.

Addressing a press conference here on Wednesday, Sachin Saxena, Operations Director (Operations and Logistics), Nokia India, said so far, over 75 million handsets were churned out by the Sriperumbudur factory, which saw the fastest ramp-up in March 2006 after commencing operations in January 2006.

Employing around 6,000 people (about 70 per cent are women), the three-shift India facility saw 50 per cent of its production exported to 58 countries.

According to Mr. Saxena, exports were worth Rs. 1,200 crore during 2006-07.

Nokia, it may be recalled, had originally committed an investment of $150 million in five years. It had so far invested $210 million (excluding the $75 million now planned) into the Indian operations.

Vendors’ facilities

Mr. Saxena said seven Nokia vendors had committed to set up production facilities at the Nokia Telecom Park. Three of them had already begun operations.

The remaining would become fully operational by early 2009. Once it was fully operational, the park could provide jobs to around 30,000 people, he pointed out.

More than the cost element, Mr. Saxena felt that the nearness of vendors (at the telecom park) would help Nokia substantially in terms of quickly responding to the demands of customers.