MindTree plans to invest about $10 million in its telecom products and smartphone production business.
Chief executive officer Natarajan said the company is on track to launch its first smartphone by the second half of the current fiscal. The phone allows users to check email and surf the internet. "We are in talks with carriers and handset manufacturers and are seeing good response from the US and Europe," Natarajan said.
He also said that the company hasn't yet received any firm commitments from customers for its new product.
The company has spent about $1 million (more than Rs 4.5 crore) on product development so far in this fiscal year and plans to invest about $10 million to $11 million (between Rs 46 and Rs 51 crore) in its telecom products and smartphone manufacturing business.
MindTree had acquired Japanese firm Kyocera's Indian facility for $6 million (close to Rs 28 crore) in the last quarter of 2009. It plans to use the facility to start its own mobile phone manufacturing business.
MindTree reported that its first quarter consolidated net profit slumped, hurt mainly by foreign exchange losses on currency hedges, higher wage costs, and by investments in its upcoming mobile handset manufacturing business.
According to sources, another Indian company Moser Bear is also planning to enter the mobile handset market. Unlike MindTree, it will focus on the Indian market. The timeline for the launch has not yet been finalised. According to sources, Moser Baer will manufacture handsets in India, and will not sell Chinese imports.
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