On the eve of Chinese Premier Wen Jiabao’s visit to India, Shanghai-based telecom equipment manufacturer Huawei Tuesday announced an investment of $2 billion in a new research facility in Bangalore and its manufacturing unit in Chennai.
The investment, which will be made over the next five years, will also focus on augmenting the Chinese firm’s capabilities in local sourcing, increasing headcount, while scaling up potential of its research and development (R&D) and manufacturing units, Huawei said in a statement.
“Huawei has been in India for over a decade and is committed to a long-term development and cooperation in India. As 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,” said Max Yang, chief executive of Huawei India.
The Chinese firm, has however, not had a smooth ride in the Indian telecom market. Security concerns from the Indian intelligence establishment resulted in the company’s equipment orders slowing down.
Huawei had earlier this year indicated that it would build a local manufacturing facility to allay the Indian government’s concerns.
The announcement came a day before the Chinese Premier begins his visit, which is expected to see a slew of commercial deals being signed between corporates businesses of the two countries.
Huawei India currently has operations in 19 major regions and employs over 6,000 technical and professional staff across the country.
On the R&D front, Huawei has the biggest research centre outside China, which has been operational in Bangalore since 1999. The centre currently employs 2,000 engineers and with the development of a new facility in the same city will see headcount rise to about 3,000 engineers.
Both the R&D facility are being developed to cater to exports and the local market.
The company added that it would also utilise the investment for its corporate social responsibility initiatives such as developing key technical skills through Huawei’s local training centres and supporting an e-education programme involving 1,000 rural schools.