Overview of Mobile Manufacturing Units in India

India is emerging fast as a major centre of mobile manufacturing units, with several domestic and international companies establishing their facilities in the country. The country is the world's second-largest mobile phone manufacturer after China. With the current growth rate, India is not far from becoming the leading mobile manufacturer in the world. According to the Indian Cellular Association (ICA) and IDC, the production of mobile phones within the country jumped from 3 million devices in 2014 to 11 million in 2017.

The market is also seeing healthy competition from new domestic companies manufacturing mobile phones and their spares. These companies are giving tough competition to the existing mobile phone manufacturing giants. Overall, the country has made remarkable progress under the Digital India campaign that promotes products made in India. New and upcoming mobile phone manufacturing companies are already catering to the huge domestic and international demand for components like display chargers, chipsets, cameras, batteries and mobile accessories. Government initiatives like the Digital India campaign have also led to record investment in the information technology sector. This has also helped mobile manufacturing units to flourish rapidly.

Government initiatives to promote mobile manufacturing units in India

Due to the investment-friendly policies of the government in the field of electronic and telecommunication device manufacturing, like mobile phones and components, new businesses have an advantage today. The Ministry of Electronics & Information Technology(MeitY) has implemented several production-linked incentives to boost India's telecommunication equipment and mobile manufacturing industry.

To encourage mobile manufacturing units in India, the government has launched the Modified Electronic Manufacturing Clusters (EMC 2.0), Manufacturing of Electronic Components and Semiconductors (SPECS) scheme, etc. Some vital schemes implemented in this regard are -

• Software Technology Parks of India (STPI) Scheme
• Remission of taxes and duties on Exported Products (RoDTEP)
• Service Exports from India Scheme (SEIS)
• Duty Exemption & Remission Schemes

Licences needed and Documents required to set up mobile Manufacturing Unit.

To start a mobile manufacturing unit, the technical know-how of the manufacturing process and an understanding of the market are prerequisites. However, for obtaining licences, permits and authorisations, the entrepreneur may need expert assistance and guidance to complete legal and procedural formalities. Getting assistance can save the business both in terms of time and money in the long run.

The mobile manufacturing unit requires the following licences and certificates for launching the product in the market -

Registration the of the Mobile Manufacturing Unit

Registering a mobile manufacturing unit in India provides many benefits. It establishes a separate identity for the business and acts as eligibility criteria for various schemes and incentives offered by the government.

CRS Registration

MiETY and the Bureau of Indian Standards (BIS) have introduced the Compulsory Registration Scheme (CRS). Under the scheme, the electronic products that are domestically produced or imported must clear the specific testing to obtain the CRS certificate. Also, it is obligatory for every manufacturer at the mobile manufacturing unit to register their products before their launch into the market.

Documents required in this regard are -

• Form I
• Business License
• ISO certification
• Brand trademark
• Brand authorisation letter/Brand declaration letter
• Affidavit
• Nomination letter
• ID proof
• AIR authorisation letter
•  GST registration
• Mandatory testing and quality reports of the product
• List of critical components of the product
• Undertaking by the applicant

Consent NOC

The manufacturer must register with the concerned State Pollution Control Board (SPCB/PCC) and comply with the procedures and guidelines mentioned in the Solid Waste Management Rules, 2016. S/he must fill out Form 1 to obtain consent under the Air and Water Acts for establishing the mobile manufacturing unit.

Documents required for this include -

• Business Registration Certificate
• Factory/trade license
• PAN card of the authorised signatory
• GST certificate
• Layout plan
• Process flow chart

• Proof of ownership of site or lease/ rent agreement

EPR Authorisation

Extended Producer Responsibility (EPR)means the collection and recycling of end-of-life electronics items by the irmanufacturers. Targets have been given to the manufacturers of electronic devices like mobile phones under the E-waste Management Rules. The Producers, Importers and Brand Owners (PIBOs) must comply with the EPR obligations if they import any new or refurbished electronic products into the country. Importers of EEE items for sale in the country must have an EPR certificate issued by the Central Pollution Control Board (CPCB). An importer can either fulfil its EPR through the take-back system or set up collection centres to channel e-waste generated to authorised dismantlers/recyclers. However, they must provide a comprehensive EPR plan to the CPCB at the time of application.

Documents required for EPR authorisation for mobile manufacturing unit

• GST certificate 
• Importer Exporter Code (IEC) 

• Ownership documents of the site (rent or lease proof) 
• Memorandum of Association 
• Details of imported EEE, like the code and quantity imported, as per the E-Waste Management Rules
• Form 1 for EPR authorisation 
• Copy of permission from the Ministry for selling their product

• Copy of agreement with dealers, recyclers, collection centre, and TSDF
• Copy of trade licence issued by Directorate General of Foreign Trade

• Self-declaration, including the importer’s name and authorised person, brand name and contact details

Factories Licence

Description of factories or business plans of any class has to be submitted to the Chief Inspector or the state government. Expansion or replacement of any plant or machinery in specified limits will not be charged additionally if involved with safe working space and environmental conditions. This license is mandatory for establishing a mobile manufacturing unit in India.

BIS Registration

The Bureau of Indian Standards, from September 2015 onwards, made the registration of mobile phones mandatory according to IS 1352 (Part 1):2010 under the CRS.

The documents required for BIS registration for phones manufactured at the mobile manufacturing unit are as follows -

• Duly filled BIS application form
• Duly filled CDF/CCL form
• Business license of manufacturing unit
• ISO certificate of the manufacturer
• Marking label/details of marking on the product
• Authorisation letter (If the signatory is a person other than the head of the manufacturing)
• Trade mark certificate
• Trademark authorisation (If TM is owned by other than the manufacturer)
• Authorised Indian Representative Company registration proof in INDIA (in case of the foreign manufacturer)
• Photo ID of authorised Indian representative/Authorised signatory
• Technical specification sheet of product/user manual

Additional Licences required

• GST registration
• Fire NOC
• MSME Registration (if applicable)
• Hazardous and E-waste management with registered TSDF operators, recyclers and refurbishers of e-waste.

Market Overview of the Mobile Manufacturing Industry

Today, India accounts for 11 per cent of global mobile production. This was only 3 per cent in 2014. Recently, India overtook the United States to become the world’s second-largest smartphone market after China. Industry experts suggest that the demand for smartphones is bound to rise. Huge demand in the segment is awaited due to many factors, like low data prices and the popularity of UPI in the country, together with the digital India initiative for online transactions.

Communication and media consumption in India will require more than 780 million connected smartphones by 2022, compared to 359 million in 2016. India’s smartphone market grew 14 per cent, the fastest pace of growth among the top 20 markets, according to International Data Corporation (IDC). The country accounts for more than three crore smartphone purchases every quarter, and this percentage keeps increasing. According to Ericsson Mobility Report, mobile subscriptions in India are expected to rise to 1.4 billion by 2021. Thereby indicating the dire need to establish many mobile manufacturing units. Moreover, the telecom industry in India is among the top five employers creating over 40 lakhs of direct and indirect jobs. As per the Ministry of Electronics & IT, India's electronics industry, including exports, is expected to increase to US$ 120 billion by 2026, showing the immense scope of growth for such businesses in the future.

How will Enterclimate Assist You? 

Solutions specific to your business needs We provide one-stop support for the procedural requirements needed by a mobile manufacturing unit and environmental compliance by offering tailored packages that cater to your requirements.

Expert advice all along the way Enterclimate experts have more than ten years of experience assisting with licencing and permits, including No Objection Certificate from SPCB, CPCB authorisation, environment clearance, waste management authorisation and tie-ups with ULBs, NGOs and PROs for their EPR and post compliance.

Precise and prompt assistance  Our experts at Enterclimate ensure that our client's queries are resolved timely and accurately, along with keeping our clients updated with relevant updates related to their business.