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India a key market, says Ericsson

Swedish telecommunications equipment giant Ericsson said India has emerged as a key market for its global operations, and that it will invest more here.

In the calendar year 2015, in terms of business, India was among the top three countries globally, with 5 per cent contribution to Ericsson’s overall net sales, behind China and the US. In India, the company reports revenues of over Rs 10,200 crore, a growth of 74 per cent as compared to the previous year.

Paolo Colella, head of region India, Ericsson told The Hindu , “Investments in mobile broadband infrastructure to support the high growth in data usage, increased focus on network quality, and cost optimisation have driven strong sales growth in India.”

The company is also looking at boosting its managed services revenue from telecom operators this year. Besides, it is also investing in a new factory.

“2016 is a milestone year for Ericsson India, as we strengthen our commitment to ‘Make in India’ by setting up our second manufacturing facility in Pune. The hi-tech, export-oriented manufacturing facility will generate employment, as well as lead to the development of the vendor ecosystem in and around Pune,” he said.

Recently, Ericsson announced plans to invest $15 million (approximately Rs 100 crore) to set up a production facility at Chakan in Pune.

The manufacturing unit, expected to be operational by third quarter of this year, will serve as an export hub for South East Asia, West Asia and Sub-Saharan Africa. The company plans to manufacture current and future products for 2G, 3G and 4G technologies at this plant including radio and microwave products.

This will be the second manufacturing unit by the Swedish giant in India. The first was setup in 1994, at Jaipur in Rajasthan.

India, where the company has been associated for over 110 years, constitutes the largest employee base for Ericsson in the world.

A majority of its 22,000 employees in India are services professionals.

The company has employed large number of engineers working in research and development centres in Gurgaon, Chennai and Bengaluru, in areas such as revenue management, Internet protocol, networking, modems and big data.

India is also one of the four countries, where Ericsson has set up Global Service Centres. The other three are China, Romania and Mexico.



India contributes 5 per cent to overall net sales of Ericsson, behind China and the US



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Printable version | Jan 22, 2021 12:18:14 PM | https://www.thehindu.com/news/cities/mumbai/business/india-a-key-market-says-ericsson/article8379848.ece

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