Vivo plans to launch one of the biggest manufacturing units in India in July targeting an annual production of 120 million mobile phones with over Rs 3,000 crore investment.Â
Currently, Vivo is looking for a joint venture partner from India, which it could manage on its behalf, primarily after it held preliminary talks with Tata Group, Murugappa Group and Dixon Technologies, which fell through due to a difference over the valuation of the business.
The new manufacturing facility comes up in Greater Noida on 170 acres of land and is equally as large as Samsung’s factory with a production capacity of 120 million units each year.
Micromax Informatics manufacturing unit the Bhagwati Enterprises moved into the unit that was once occupied by Vivo which had the manufacturing capacity of forty million devices.
No decisions have been taken with potential partners, including Dixon, at the time of publishing this report. Dixon recently acquired a controlling interest in Ismartu India, a subsidiary of China’s Transsion Holdings that manufactures phones.
The Tata Group has previously discussed partnering with Vivo but is now focused on integrating the local unit of iPhone contract manufacturer Wistron.
With tensions along the border, Chinese enterprises investing in India face new difficulties from tax and foreign exchange management authorities. The Indian government has supported Chinese brands forming joint ventures with local businesses to boost the domestic mobile phone market, and noncompliance with regulations and laws will have no impact on their investments.
