Motorola to invest $100m in India plant

08 Jun 2006

(Associated Press via NewsEdge) Motorola will invest $100 million to build a mobile phone and telecom equipment plant in India, a move aimed at countering rival Nokia 's dominance in the Indian market.

The plant, to be built near the southern city of Madras, is expected to become operational next year, a Motorola statement said.

The announcement follows plans by Nokia to set up a mobile phone plant in India, also near Madras, with an investment of $150 million.

An overwhelming majority of nearly 100 million mobile phone users in India prefer Nokia handsets over those from Motorola, Samsung Electronics, and Sony Ericsson.

The latest announcement by Motorola is part of the company's efforts to boost its sluggish sales in one of the world's fastest growing handset markets. India is adding 4 million new mobile phone subscribers every month.

During a visit to India last year, Motorola CEO Edward Zander acknowledged the company had failed to seize the opportunity in India. 'We just didn't do a good job here. But you are going to see us work very hard,' Zander had said.

The company has since entered into a distribution agreement with Bharti Televentures, India's largest cellular service provider, and commissioned a manufacturer in India to assemble a best selling phone.

c 2006 The Associated Press

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