US-headquartered e-commerce giant Amazon on Tuesday announced plans to begin manufacturing electronic devices, including Fire TV stick, in India, by the end of this year.
This will be the company’s first Amazon manufacturing line in India.
In a blogpost, Amazon said it will commence its manufacturing efforts with contract manufacturer Cloud Network Technology, a subsidiary of Foxconn in Chennai, and start production later this year.
The announcement was made after a virtual meeting between Union Minister for Communications and IT Ravi Shankar Prasad and Amazon’s Global Senior Vice-President and Country Head for India Amit Agarwal.
“Range of issues related to the digital sector were discussed during this meeting. After this meeting, Amazon India has made an announcement to start manufacturing of electronics products from India. To begin with, Amazon is going to start manufacturing Amazon Fire TV stick from India,” an official release said.
Mr. Prasad said, “India is an attractive investment destination and is poised to become a major player in the global supply chain in the electronics and IT products industry…We welcome Amazon’s decision to set up a manufacturing line in Chennai, as it will enhance domestic production capacities, and create jobs as well.”
He added that this is only a beginning for Amazon’s efforts to manufacture electronics products from India for India and export markets.
Mr Agarwal said, “…we are delighted to announce Amazon’s first manufacturing line in India to produce hundreds of thousands of Fire TV Stick devices every year catering to the demands of the Indian customers. This further reiterates our commitment to the Government of India’s ‘Make in India’ initiative.”
He added that Amazon will continuously evaluate scaling capacity to additional marketplaces/cities depending on the domestic demand.
During the meeting, Mr Prasad also asked Amazon India to help in taking products made by India’s artisans and Ayurvedic products to global markets through the e-commerce platform. He said, “Amazon is a global company but Amazon India must evolve as a truly Indian company deeply connected with Indian business community and culture.”
A senior official from Tamil Nadu government said they were in touch with Amazon, which already has a significant presence in the State through its warehouse and other facilities.
“What we understand is Amazon would first manufacture the devices through contract manufacturer Foxconn and later might start their own production,” the official added.