Nokia Picks Chennai

It is out. Chennai has bagged Nokia's big-ticket investment. Mobile handset
giant Nokia has decided to set up its 10th manufacturing plant in Sriperambadur,
near Chennai. The plant will become operational by first half of 2006 and would
employ about 2,000 employees. The company plans to pump in $150 mn in a span of
over three years on the Chennai facility. It has acquired 210 acre of land that
would also host its suppliers' infrastructure. Upon completion, it will be
called 'Nokia Industrial Park.' To begin with, the Chennai facility would be
addressing the Indian market demands.

What are the other cities that figured in its shortlist? Or, what are the key
parameters that made it choose Chennai? These questions did not yield much
response. The Nokia spokespersons only indicated that the excellent co-operation
from the government and the overall positive attitude they demonstrated during
the whole course of discussions firmed up their belief that Nokia would be
comfortable to operate out of Chennai. Raimo Puntale, senior vice-president,
operations and logistics, at Nokia added: "The skilled manpower also made
us decide in favor of Chennai, and we are confident that we will be able to get
the right talent."

Nokia's foray into Chennai will improve India's image as an investor
friendly place for manufacturing. This big-ticket investment will also be a shot
in the arm for the Tamil Nadu government. So, from mid-2006, all Nokia mobiles
sold here would be 'Made in India.'

Shrikanth G in
Chennai