The company, which started operations in India last year, manufactures devices in China and Brazil. Located in Sri City here, the India unit has started assembly of a new handset 'Redmi 2 Prime' and it will gradually include other devices from the company's portfolio.
"This is our second local manufacturing unit outside of China, the first one being in Brazil with Foxconn... We started our discussions with the government in February and we have already started with the manufacturing," Xiaomi Vice President Hugo Barra told reporters here.
Last week, Foxconn had announced plans to invest USD 5 billion over the next five years in Maharashtra, which had given the company 1,500 acres of land for its plant.
Xiaomi's first device being manufactured from Vishakhapatnam is Redmi 2 Prime, priced at Rs 6,999, and it will go on sale across online platforms (Flipkart, Snapdeal and Amazon and from today, Barra added.