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July 24, 2024
Vivo to launch one of India’s largest mobile phone manufacturing facilities
Business World

Vivo to launch one of India’s largest mobile phone manufacturing facilities

Jun 18, 2024

Chinese smartphone giant Vivo is gearing up to launch one of India’s largest mobile phone manufacturing facilities next month. Located in Greater Noida, this new plant boasts an impressive annual capacity of 120 million devices, with an investment exceeding ₹3,000 crore.

Vivo is actively seeking an Indian partner to oversee its manufacturing operations. Discussions have been held with several potential partners, including Tata Group, Murugappa Group, and Dixon Technologies. However, final agreements have yet to be reached due to differences over valuation. Sources mentioned in the report emphasized Vivo’s preference for a strong Indian partner but clarified that negotiations are ongoing.

The company recently moved out of its previous manufacturing unit, capable of producing 40 million devices annually, which has now been taken over by Micromax Informatics’ subsidiary, Bhagwati Enterprises.

Spread across 170 acres, Vivo’s new manufacturing unit rivals Samsung’s largest mobile phone manufacturing plant in India, inaugurated in 2018, with an identical annual production capacity of 120 million units.

Earlier talks between Vivo and Tata Group were confirmed, but Tata is currently focused on integrating Wistron’s local unit, acquired last year. Dixon Technologies, which had previously partnered with Transsion Holdings, has also confirmed initial discussions with Vivo regarding a potential joint venture.

Amidst heightened scrutiny of Chinese firms by Indian tax and foreign exchange authorities, Vivo and other Chinese brands are encouraged to collaborate with Indian companies. The government has assured that failing to do so won’t jeopardize their investments in the Indian market.

Vivo’s move to establish this state-of-the-art manufacturing facility signifies a significant investment in India’s mobile phone manufacturing sector, promising enhanced production capabilities and potential job creation opportunities locally.

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