Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Vivo, a smartphone brand in India, is set to inaugurate a colossal manufacturing facility in Greater Noida, with an investment of INR 23,000 crore. This state-of-the-art plant will boast an annual production capacity of 120 million devices, rivalling Samsung's existing facility. Vivo is actively seeking an Indian joint venture (JV) partner, engaging in discussions with industry giants like Tata Group and Dixon Technologies. Despite valuation disagreements, Vivo's commitment underscores Noida's emergence as a hub for electronics manufacturing. With significant investments from global players, including Samsung and LG, Noida is poised to advance India's capabilities in smartphone production on a global scale.
Vivo, a smartphone brand in India, is on the verge of opening a giant new manufacturing facility in Greater Noida. This INR 23,000 crore facility, boasting a production capacity of 120 million devices annually, will be among the largest of its kind in the country, rivalling Samsung's existing plant. Advertisement
While the impressive production capacity is a major development, Vivo is also actively searching for an Indian joint venture (JV) partner to manage its operations. Discussions have taken place with prominent Indian players like the Tata Group, the Murugappa Group, and Dixon Technologies, a leading contract manufacturer with experience in similar partnerships. However, these talks haven't reached a conclusion, primarily due to disagreements on valuation of the potential JV.
Vivo's recent announcement to establish a large-scale facility in Noida reflects the city's emerging status as a prominent centre for electronics manufacturing. Over the years, Noida has drawn the attention of key industry giants, exemplified by Samsung's substantial investment in 2018. Samsung injected INR 4,915 crore to expand its manufacturing capabilities for smartphones and refrigerators, solidifying Noida as home to one of the world's largest mobile phone manufacturing plants. Additionally, LG Electronics India, a subsidiary of the global consumer electronics and appliances leader, operates a significant manufacturing unit within the city. These developments highlight Noida's growing appeal and infrastructure for fostering advanced electronics production on a global scale.
Dixon Technologies is currently engaged in discussions aimed at establishing a joint venture (JV) structure similar to their recent agreement with Transsion, a prominent Chinese phone manufacturer. In the Transsion deal, Dixon initially acquired a majority stake in Transsion's manufacturing unit in India for INR 238.36 crore, with plans to gradually increase their ownership to approximately 55%.
Earlier this year, the Tata Group explored the possibility of forming a JV with Vivo. However, their strategic focus has since pivoted towards integrating the local unit of Wistron, an iPhone contract manufacturer acquired last year. Although the financial details of this integration have not been publicly disclosed, it underlines Tata Group's ongoing efforts to strengthen its foothold in India's electronics manufacturing sector.
Finding a suitable JV partner has proven difficult for Vivo due to valuation disagreements and control issues. Negotiations are likely to involve a third-party valuation from a "big four" accounting firm to ensure fairness, considering Vivo's significant investment in India.
The Indian government has been encouraging Chinese smartphone companies to form JVs with Indian partners, but it has also clarified that such partnerships are not mandatory. This approach aims to balance security concerns with the benefits of foreign investment in the Indian mobile manufacturing sector, estimated to be worth trillions of rupees.
Overall, Vivo's new facility signifies a major step towards enhanced domestic phone production in India, with a potential capacity to produce one out of every six smartphones sold in the country annually. The search for a JV partner with an INR 23,000 crore investment at stake remains a key factor to watch, and the outcome will influence Vivo's long-term operational strategy in the country. Noida's growing electronics manufacturing ecosystem positions it to play a central role in India's ambitions of becoming a global leader in smartphone production.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
