Chinese telecom equipment manufacturer Huawei Telecommunications on Tuesday announced an investment of $2 billion in India over the next five years.
The money will be used for four initiatives including establishing a new R&D campus in Bangalore and an equipment manufacturing facility at Sriperumbudur near Chennai.
Ramping up operations
In addition, Huawei will set up resource hubs for training engineers in multiple locations in India and also ramp up its local operations to meet the demand for third generation technology. These initiatives are expected to generate employment for 4,000-5,000 people over the next five years. The Chinese company currently has 6,000 employees in India.
Mr Max Yang, CEO, Huawei India, said, “Huawei has been in India for over a decade and is committed to a long-term development and cooperation in India. As an integral part of Indian telecom industry development and an active player serving all telecom service providers, Huawei India strives to be the long-term partner for the development of India's telecom and IT industry and inclusive growth.”
Currently, Huawei has 2,000 employees for R&D in India based out of multiple rented premises in Bangalore. All these facilities will be consolidated under the new unit to be set up across 100 acres in Whitefield, Bangalore. The new unit will have a seating capacity for up to 3,000 employees. This is already the biggest R&D centre for the company outside of China.
The manufacturing unit in Sriperumbudur will make network equipment primarily to meet demands from the growing Indian market but may also start exporting at a later stage. It has acquired 100 acres for the purpose.
Huawei has recently won contracts from as many five mobile operators to supply 3G gear, breaking into a market so far dominated by European vendors. RCom, Tata Teleservices, Airtel, Idea Cellular and Aircel have placed orders worth multi-billion dollars with the Chinese vendor.
Five-year plan
“The comprehensive five-year plan will focus on the development, augmentation and cooperation in the areas of local R&D, local manufacturing, technology cooperation with Indian IT service companies, local sourcing, local employment, talent development, and supporting rural education and IT literacy in India,” said a company statement.
The initiatives include further investments in developing key technical skills through Huawei's local training centres and joint R&D with local partners and leading Institutes in India, supporting 1,000 rural schools in e-connectivity and e-education and training of 1,000 IT rural teachers, among other CSR programmes.
The investment is an indication that issues related to security concerns around Chinese equipment have been to put to rest.
News in Chinese: