Vivo to open India’s largest smartphone plant in Greater Noida next month

WhatsApp Group Join Now
Telegram Group Join Now

The Greater Noida facility can produce 120 million devices per year and was built with an investment of over Rs 3,000 crore.

Vivo to open India's largest smartphone plant in Greater Noida next month

Chinese smartphone maker Vivo will open one of India’s largest mobile phone factories in Greater Noida next month. The plant, built with an investment of over Rs 3,000 crore, will have an annual production capacity of 120 million devices, according to The Economic Times.

Vivo previously engaged in talks with Tata Group, Murugappa Group, and Dixon Technologies for a joint venture in India. However, negotiations halted because of differences in valuation. As a result, Vivo is now searching for a new Indian partner to oversee its manufacturing operations.

The company recently left its leased manufacturing facility, which could produce 40 million devices annually. Bhagwati Enterprises, part of Micromax Informatics, has acquired this plant.

Vivo’s new facility in Greater Noida covers 170 acres and can manufacture up to 120 million units per year.

Dixon Technologies: A potential JV partner

Dixon is considering a potential joint venture with Vivo, as reported. Talks are in early stages, exploring a partnership similar to Dixon’s arrangement with Transsion for Vivo’s manufacturing operations.

Earlier, Dixon announced plans to acquire a majority stake in Ismartu India, a manufacturing unit of Transsion Holdings. Initially, Dixon plans to buy a 50.10% stake for Rs 238.36 crore in cash, aiming to increase ownership to about 55% by FY27.

Vivo has reportedly been in discussions with several Indian companies for months but hasn’t reached agreements due to differences over valuation, management control, and other factors, sources mentioned in the report.

Another source quoted in the report emphasized that the company’s valuation must be assessed by an independent third party. They also highlighted the importance of avoiding forced sales of shares at reduced prices, given the substantial investments made by the company in the Indian market thus far.

India-China joint venture

The Indian government may approve joint ventures between Indian and Chinese companies, stipulating that the Indian partner must hold a majority stake of at least 51% in the local unit.

In 2020, during tensions at the India-China border, the government imposed strict regulations mandating companies from neighboring countries sharing a border with India to seek government clearance before investing. This policy caused delays for many projects. However, there seems to be a change in the government’s stance now, as it is more inclined to facilitate such collaborations while ensuring India’s interests are protected.

Tata Group in talks to acquire stake in Vivo

Tata Group is close to acquiring a controlling stake in Vivo’s Indian division, with talks centered on finalizing the value of the deal.

ED files money laundering case against Vivo

The Chinese smartphone manufacturer is facing government scrutiny, with Vivo currently under investigation by the Enforcement Directorate (ED) for potential violations of the Prevention of Money Laundering Act (PMLA). The ED claims that Vivo may have defrauded the Indian government, prompting the probe agency to initiate a money laundering case on February 3, 2022. Allegedly, Vivo unlawfully transferred Rs 62,476 crore to China to evade taxes in India.

 

 

 

 

WhatsApp Group Join Now
Telegram Group Join Now

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top