The Chennai plant is expected to fulfill Xiaomi’s production demand in the next year or two. Outside of its very own borders, India is the hugest market for the Chinese company. Xiaomi has released four handsets in the country so far, covering the Mi 4, Redmi Note, Mi 3 and Redmi 1S.

The company’s decision to manufacture its devices in India may lower down the cost incurred on it.

Xiaomi has already joined hands with online retailer Flipkart to sell its phones in the country. Now, the company is planning to vend its products through its won portal Mi.com.