Investment in India

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Motorola has announced plans for a manufacturing facility in India, with an initial investment of $30 million, increasing to a total of $100 million in phases.

The company will establish a manufacturing plant in the 300 acre Sriperumbadur Hi-tech Special Economic Zone (SEZ) being developed by Motorola and Government of Tamilnadu at Sriperumbudur, near Chennai.

Ron Garriques, executive vice president, Motorola Inc. and president, mobile devices business, highlighting the importance of India to Motorola's global plans, said, "India is a vitally important market for Motorola and as a strategic manufacturing hub offers a compelling value-proposition of talent and strong cost efficiencies. Our decision to make an investment of this scale is a reflection of our continued global commitment to connect the next billion consumers."

Expected to be operational in 2007, the facility will undertake full-scale production, to support a wide range of Motorola handsets. It will also support production and assembly of network base stations for products across Motorola's Networks & Enterprise portfolio.

"We have long been engaged in high-end 'soft manufacturing' and creating intellectual property in the country,” commented said Firdose Vandrevala, chairman, Motorola India and corporate vice president, Motorola. “With this Motorola owned facility we come full circle, delivering on the promise of leveraging India's intrinsic advantages: excellent IT skills, exceptional scientific talent, competent, mature workforce and economies of scale offered by a vast market."

Motorola's manufacturing initiative will supplement the presence of its six R&D centres in India, including Motorola Labs, Core Networks Division, Embedded Communications Computing, and Global Software Group.