Handset maker Vivo is gearing up to inaugurate one of the country’s largest mobile phone production facilities next month, says a report by The Economic Times (ET). Vivo’s handset making facility will be situated in Greater Noida, Uttar Pradesh, and it will boast an annual production capacity of 120 million devices, with an investment of more than a whopping Rs 3,000 crore.
Micromax’s Bhagwati Took Over Vivo’s Old Manufacturing Unit
Recently, Vivo vacated its leased manufacturing plant, which had an annual production capacity of 40 million devices. This facility has now been taken over by Bhagwati Enterprises, the manufacturing division of domestic phone company Micromax Informatics. Vivo’s new factory, located on a 170-acre site in Greater Noida, has an annual production capacity of 120 million units.
Indicating a possible collaboration, the ET report cited sources from homegrown Dixon Techologies, revealing that the company is in preliminary talks with Vivo. Noida-headquartered Dixon is considering a deal similar to its existing arrangement with Hong Kong-based Transsion, aiming to handle Vivo’s manufacturing operations in India.
The company is also actively looking for an Indian joint venture (JV) partner to run its manufacturing operations. It had held talks with the Tata Group and the Murugappa Group, apart from Indian contract manufacturer Dixon Technologies, to form a JV, but those had not been successful so far, mainly due to differences over valuation.
“Vivo is keen on having a strong Indian partner for its operations. While nothing has been finalised so far around the JV, talks are on with a few stakeholders,” the ET report cited the source as saying.
The Chinese smartphone maker was also negotiating to sell its stake in the Indian factory to domestic conglomerate Tata Group, says a recent report by Moneycontrol.
The Moneycontrol report, citing an anonymous source, suggested that Tata is looking to acquire a majority stake in Vivo’s Indian unit and that discussions are well advanced.
This development comes amid India increasing its oversight of foreign companies operating within its borders.