Xiaomi plans to set up a new manufacturing unit in India in partnership with Foxconn.

The two tech companies are focused on expansion and are in talks with governments to set up new manufacturing facilities in different locations.

“We are looking to expand capacity and set up more lines and plants. We are proactively looking at it and are working with our partner Foxconn. Currently, discussions are on with different governments. We have also been increasing the capacity at the existing plant,” the Head of Xiaomi India Manu Kumar Jain said.

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After their success in the Indian urban market through the online sales, Xiaomi has realized that getting into tier 2 and tier 3 cities will be through offline sales and increasing the supply of its smartphones, according to HuffPost India. The Chinese smartphone maker has decided to sell their new Redmi Note 3 in the offline stores as well. Hugo Barra, Xiaomi's global VP, said over a million units of the Redmi Note 3 has been sold in India.

Indian customers have criticized Xiaomi for not being able to match the demand of the smartphone, especially with the high demand for the Redmi Note 3. Jain said that the company has decided to import around six lakh units of Redmi Note 3 from China, but it ran out of stock within three months.

To keep up with the demand, Xiaomi is asking permission from the Department of Industrial Policy and Promotion (DIPP) to open single-brand retail outlets in India. The Chinese tech company is also planning to open retail stores because its online-only model can not handle the massive demand.

The Indian government has launched the "Make in India" program to entice companies to manufacture devices in India, Android Headlines reported. The program will give manufacturers various benefits if they choose to make their products in India. Lots of companies have joined the program including Xiaomi.

TagsXiaomi, Foxconn, India, smartphone manufacturing unit, Redmi Note 3, Xiaomi retail stores