Nokia to finally establish manufacturing unit in India

While no location for the plant was specified, Nokia’s president Pekka Ala-Pietila said the company will take a final call by the end of Q1 2005.

Nokia’s proposed plant will entail an investment of up to $150 million over next four years — a portion of which will come from its supplier base — and, when fully operational, promises to give employment to around 2,000 people.

‘‘We have entered the next phase. While planning will take time, we feel good about the opportunities,’’ said Ala-Pietila.

He added that, three years down the line, India would be among the top five markets in terms of handset sales and among the top three in terms of subscribers. Nokia anticipates that India will account for 12 per cent of the global handset market by 2006.

The company is currently negotiating with global component suppliers to join hands in setting up an ‘‘industrial park’’ facility here. The logistics are important because the plant is like a ‘‘brother or sister’’ to all of Nokia’s other plants.