Swedish telecom major Ericsson will invest Rs100 crore in India and help play an important role in digital transformation of India, Swedish Prime Minister Stefan Lofven has said.
"Ericsson will have an important role to play in India's digital transformation," he said, even as he applauded the Indian government's "bold initiatives" to improve business environment through 'Make-In-India" that aims to promote manufacturing in the country.
Ericsson, based in Stockholm, said it planned to develop its facility at Chakan, near Pune, as an export hub for exports to South East Asia, West Asia and Sub Saharan African regions.
''We are investing an initial amount of $15 million (about Rs 100 crore) in our second factory at Chakan, near Pune,'' the Financial Chronicle quoted Mats H Olsson, senior vice president and head of Asia-Pacific, Ericsson, as saying.
He was in Pune, one of the major industrial hubs for Swedish firms, to show the new Ericsson plant under construction to the visiting Swedish prime minister Stefan Lofven. Pune also houses some of the major Swedish firms like Alfa Laval, Tetra Pak, Sandvik, Atlas Copco, etc.
Ericsson's Indian arm accounted for about 5 per cent of the company's net sales of $29.4 billion in 2015.
Speaking after attending the `Make in India' function, the Swedish prime minister also noted that Ericsson had about 22,000 employees at its facilities in India. "I am proud that Ericsson is part of 'Make-In-India'," he said, adding it was a "company of future."
Lofven also visited Ericsson's Chakan plant, which is carrying out the expansion programme, which, he said, would also serve as an export hub for the company's exports.
The company plans to manufacture current and future products for 2G, 3G and 4G technologies at this plant.
Stating that confidence of Swedish companies in India was growing, the Prime Minister said, "Our commitment and contribution in India will continue to grow. We are here for a long term."
Lofven also visited another leading Swedish venture - Tetra Pak - in the vicinity and said the product would ensure safe transport of food commodities such as milk to remote parts of India.
Lofven was accompanied by Swedish Ambassador Herald Sandberg and Fredrika Ornbrant, the country 's Consul General for Maharashtra, Gujarat and Goa.