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Vivo to inaugurate massive manufacturing facility, seeking an Indian partner

Chinese smartphone giant Vivo is set to open one of India’s largest mobile phone manufacturing facilities next month. This new plant, located in Greater Noida, has an annual capacity of 120 million devices and has been established with an investment exceeding ₹3,000 crore.

Vivo is actively searching for an Indian partner to manage its manufacturing operations.

Discussions have been held with several potential partners, including the Tata Group, the Murugappa Group, and Indian contract manufacturer Dixon Technologies. However, no agreements have been finalized due to differences over valuation. Vivo is keen on having a strong Indian partner for its operations. While nothing has been finalized so far around the JV, talks are on with a few stakeholders.”

The company recently vacated its old manufacturing unit, which had an annual capacity of 40 million devices and was taken on lease. This plant has now been taken over by Micromax Informatics’ manufacturing unit, Bhagwati Enterprises.

Vivo’s new unit, spread over 170 acres, is comparable to Samsung’s mobile phone manufacturing plant, the largest in the country, which also has an annual capacity of 120 million units and was inaugurated in 2018.

The Tata Group was in talks with Vivo earlier this year but is currently focusing on integrating the local unit of iPhone contract manufacturer Wistron, which it acquired last year.

Dixon confirmed initial discussions with Vivo for a JV, similar to a previous deal with Transsion Holdings. In April, Dixon announced plans to buy a 50.10 per cent stake in Transsion’s Ismartu India unit for ₹238.36 crore, aiming to eventually increase its stake to around 55 per cent.

Chinese companies, including Vivo, have been under intense scrutiny from tax and foreign exchange authorities in India, especially amid ongoing border tensions. While the government encourages Chinese smartphone brands to form JVs with Indian companies, it has assured that not doing so will not jeopardize their investments in the local market. BusinessToday

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