The Chinese smartphone producer is set to inaugurate its new manufacturing unit in Greater Noida next month with a multi-million dollar investment.
Vivo has invested Rs 3000 crores, equivalent to 402 million USD, to open a new assembly line with an annual capacity of 120 million devices. The new plant, which is spread over 170 acres of land in Greater Noida, will start operating in July.
This facility claims to be the largest in India, surpassing the position held by Samsung’s native production plant since 2018.
The company recently moved out of its previous leased production facility, which had an annual capacity of 40 million devices. Bhagwati Enterprises, the manufacturing arm of Micromax Informatics, has now acquired this facility.
Besides, Vivo is actively seeking an Indian joint venture (JV) partner to manage its manufacturing activities, as per reports in the Economic Times. It has held discussions with the Tata Group, the Murugappa Group, and Dixon Technologies, an Indian contract manufacturer, regarding potential JVs.
However, according to ET, the discussions have stalled over valuation issues. Vivo seeks a strong Indian partner, and the JV details are still under negotiation. Sources have said Dixon is considering a deal similar to its arrangement with Transsion for Vivo’s manufacturing operations.
Reports have also highlighted that companies based in India’s neighbouring East Asian countries have faced increased scrutiny from tax and foreign exchange regulators in recent years, particularly amidst ongoing border tensions.
The government has urged Chinese smartphone brands to establish joint ventures (JVs) with Indian companies. The centre aims to enhance India’s involvement in the mobile phone industry and empower domestic companies.
However, it has clarified that failure to do so will not jeopardise the substantial investments these brands have made in the local market over the years, amounting to thousands of crores.
Presently, Chinese smartphone brands dominate over 70% of the Indian market. According to industry executives interviewed by ET, several Chinese firms are considering outsourcing manufacturing to Indian companies or forming joint ventures with local partners.
