New Delhi, June 17, 2024 – Vivo, the Chinese smartphone manufacturer, is gearing up to launch one of India’s largest mobile phone manufacturing facilities next month. According to reports from Economic Times (ET), the state-of-the-art facility located in Greater Noida will boast an impressive annual production capacity of 120 million devices, established with an investment exceeding INR 3,000 crore.
This significant move comes on the heels of recent discussions about Tata Group potentially acquiring a majority stake in Vivo’s Indian unit. While negotiations with Tata Group and the Murugappa Group for a joint venture (JV) partnership have hit valuation-related roadblocks, Vivo remains committed to finding a suitable Indian partner to bolster its manufacturing operations.
ET cited sources indicating that Vivo has been in talks with several stakeholders, emphasizing the company’s preference for a robust Indian collaboration. Discussions have included potential partnerships with prominent Indian handset manufacturers such as Dixon, Lava International, Optiemus, Bhagwati (Micromax), and UTL Neolyncs.
Furthermore, Vivo’s strategic move follows a series of engagements between OPPO and Vivo with Indian companies earlier this year, aimed at solidifying their operational footprint in India. Dixon Technologies, in particular, is reportedly in preliminary discussions with Vivo for a manufacturing JV, similar to its existing partnership with Transsion.
The upcoming facility marks Vivo’s shift from a previously leased manufacturing unit, with a capacity of 40 million devices, which has since been taken over by Micromax Informatics’ Bhagwati Enterprises. Spanning an expansive 170 acres, Vivo’s new manufacturing hub in Greater Noida rivals Samsung’s largest mobile phone manufacturing facility in India, inaugurated in 2018.
In the backdrop of increased scrutiny on Chinese smartphone companies in India, including allegations of customs duty evasion and financial irregularities, the Indian government continues to promote local manufacturing through initiatives like ‘Make In India’. These initiatives aim to strengthen domestic control over the mobile phone sector and foster partnerships that enhance local manufacturing capabilities.
Vivo’s ambitious expansion underscores its commitment to the Indian market amidst evolving regulatory landscapes and strategic partnerships. As Vivo prepares to inaugurate its new manufacturing powerhouse, industry observers anticipate further developments in its quest to solidify its footprint in one of the world’s fastest-growing smartphone markets.
