The Complete Roadmap to Setting Up a Mobile Assembly Unit in India

India is emerging as a global mobile manufacturing hub. Driven by the Government’s Production Linked Incentive (PLI) scheme and a rapidly growing domestic market, global and Indian brands are increasingly looking to set up assembly plants in the country. But setting up a mobile assembly unit isn’t just about buying machines—it requires strategic planning, compliance, supply chain alignment, workforce training, and digital enablement.

This guide provides a complete roadmap for decision-makers planning to establish a mobile assembly facility in India.

1. Why India for Mobile Manufacturing?

PLI Scheme Benefits: Incentives of up to 4-6% on incremental sales of manufactured phones.

FDI-Friendly Policies: 100% FDI allowed in electronics manufacturing under the automatic route.

Export Opportunity: India aims to become a key global export hub for smartphones by 2026.

2. Key Steps to Set Up a Mobile Assembly Plant

2.1 Site Selection & Infrastructure

Choosing the right location is critical for cost-efficiency and compliance.

Top Locations for Mobile Manufacturing Units in India:

Noida (UP): Home to major global brands.

Sriperumbudur (TN): Close to major ports, strong electronics ecosystem.

Hyderabad & Telangana: Emerging manufacturing clusters with tech talent.

Maharashtra: Proximity to skilled workforce and logistics.

Factors to Consider:

SEZ benefits for exports.

Power, water, and connectivity availability.

Proximity to component suppliers and logistics hubs.

2.2 Certifications & Regulatory Compliance

Before production, you need to secure key certifications:

BIS Certification (Bureau of Indian Standards) – For electronics safety compliance.

WPC Approval – For wireless products and frequency use.

ISO 9001 – Quality Management System.

ISO 14001 – Environmental Management System.

ISO 45001 – Occupational Health & Safety.

RoHS Compliance – Restriction of hazardous substances.

CE Marking (for exports) – EU compliance.

E-Waste Management Authorization – Under Indian E-waste Rules.

Certifying Authorities:

BIS, WPC (DoT), State Pollution Control Boards, International certification bodies.

Lead Time:

BIS: 4-6 weeks

WPC: 4-8 weeks

ISO certifications: 2-3 months

CE marking: 2-4 weeks

2.3 Machinery & Capital Investment

The machinery setup depends on the production target. For 10 million handsets per year, the investment can range between ₹400–₹600 crore (~USD 50–75 million).

Major Equipment:

SMT (Surface Mount Technology) Lines – ₹10–₹15 crore per line.

Automatic Optical Inspection (AOI) Systems – ₹40–₹60 lakh per unit.

Functional Testing Equipment – ₹25–₹40 lakh.

Assembly Conveyors & Robotics – ₹50 lakh–₹2 crore.

Packaging Lines – ₹25–₹50 lakh per unit.

Baseline for 10M Units:

SMT lines + assembly & testing → ₹250–₹300 crore.

Supporting infrastructure (HVAC, clean rooms, storage) → ₹50–₹100 crore.

Automation & QC systems → ₹40–₹60 crore.

2.4 Workforce Planning & Training

For a 10M units/year capacity:

Direct Labor: 2,000–3,000 operators.

Skilled Staff: 200–300 engineers for QC, SMT operation, process control.

Management & Support: 100–150 staff.

Training Focus:

IPC standards for electronics assembly.

ESD (Electrostatic Discharge) handling.

Industry 4.0 tools (IoT dashboards, MES systems).

AI-driven QC systems.

2.5 Digital Enablement & Smart Factory Setup

Modern plants are data-driven and automated. Here’s where software can make a difference:

MES (Manufacturing Execution System) – Real-time production monitoring.

IoT Sensors – Machine health, energy optimization.

AI-based QC – Detect defects with machine vision.

Compliance Dashboards – Automated ISO, RoHS, and PLI reporting.

Predictive Maintenance – Reduce downtime with AI analytics.

Integrated ERP – Streamline finance, HR, procurement.

2.6 Supply Chain & Vendor Management

Secure local vendors for PCB, battery, camera modules.

Build partnerships for global components (chips, displays).

Use digital vendor portals for procurement and compliance.

2.7 Lead Times & Project Timeline

From land acquisition to full-scale production, expect:

Land Acquisition & Approvals: 3–6 months.

Construction & Infrastructure: 6–9 months.

Equipment Procurement & Installation: 4–6 months.

Trial Production & Certification: 2–3 months.

Total: 12–18 months for a fully operational plant.

3. Cost Breakdown & ROI

Capex: ₹400–₹600 crore for 10M units/year capacity.

Opex: ₹80–₹100 crore/year (labor, maintenance, utilities).

ROI: 3–4 years with PLI incentives & export benefits.

(Graph will show cost vs output and ROI timeline)

4. Challenges & Risk Mitigation

Regulatory Delays → Early engagement with authorities.

Component Shortages → Multi-sourcing strategy.

Workforce Attrition → Training & retention programs.

Technology Obsolescence→ Continuous digital upgrades.

5. Why Digital & Business Consulting Matters

Setting up a mobile assembly unit is not just about physical infrastructure. It’s about creating a future-ready digital ecosystem.

We combine:

Business Consulting – Market strategy, compliance planning, cost optimization.

Technology Expertise – Smart factory systems, MES, IoT, AI-based QC, ERP integration.

This dual capability ensures your plant is efficient, compliant, and competitive from day one.

Need Help?

Looking for a trusted technology partner to help you overcome your business challenges? At itmtb Technologies, we bring deep business and technology expertise as an established technology consulting and software development company in India. Our team has successfully partnered with clients across diverse domains and geographies, delivering innovative, scalable, and business-focused solutions. Whether you need strategic consulting, custom software development, or digital transformation support, we’re here to help. Contact us today to discuss how we can add value to your business.

FAQs

Q. What is the cost of setting up a mobile assembly plant in India?

The cost for a facility capable of producing 10 million units annually is typically ₹400–600 crore, depending on automation, compliance, and infrastructure.

Q. Which certifications are mandatory for mobile manufacturing in India?

Key certifications include BIS, ISO 9001, RoHS, WPC, CE marking, and local labor and environmental compliance.

Q. How long does it take to establish a mobile assembly unit in India?

It usually takes 9–15 months from planning to production-ready operations, considering regulatory approvals and equipment lead times.

Q. Why should I involve a software development company in my factory setup?

Software development companies bring expertise in MES, ERP, IoT monitoring, AI-based quality control, and compliance dashboards, making your plant future-ready.

Q. What manpower and training are required?

For 10M units/year, expect 800–1,200 employees including assembly workers, quality engineers, and IT staff. Training in lean manufacturing and digital tools is critical.

External Links

• Official Make in India mobile manufacturing policies - Government of India - Make in India Initiative
• Learn about BIS certification for electronics - BIS Certification Guidelines
• MeitY guidelines for mobile manufacturing - MeitY (Ministry of Electronics & IT)
• ISO 9001 certification process for manufacturing - ISO 9001 Certification Details
• RoHS compliance requirements for electronics manufacturing - RoHS Compliance Information