Chinese smartphone maker Vivo is poised to open one of India’s largest mobile phone manufacturing facilities in Greater Noida next month. The state-of-the-art plant, established with an investment exceeding ₹3,000 crore, boasts an annual production capacity of 120 million devices, making it one of the biggest of its kind in the country.
Vivo is actively seeking an Indian partner to manage its manufacturing operations and has engaged in discussions with several potential collaborators, 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,” says a source cited in the report.
The new facility comes as Vivo vacates its former manufacturing unit, which had an annual capacity of 40 million devices and was leased. This previous plant has now been taken over by Micromax Informatics’ manufacturing unit, Bhagwati Enterprises.
Spanning 170 acres, the new Vivo unit 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.
Earlier this year, the Tata Group was in talks with Vivo but is currently focusing on integrating the local unit of iPhone contract manufacturer Wistron, which it acquired last year. Meanwhile, Dixon Technologies has confirmed initial discussions with Vivo for a potential joint venture, similar to a previous deal with Transsion Holdings. In April, Dixon announced plans to buy a 50.10 percent stake in Transsion’s Ismartu India unit for ₹238.36 crore, with an aim to eventually increase its stake to around 55 percent.
Chinese companies, including Vivo, have been under intense scrutiny from tax and foreign exchange authorities in India, particularly amid ongoing border tensions. While the Indian government encourages Chinese smartphone brands to form joint ventures with local companies, it has assured that not doing so will not jeopardize their investments in the local market.
This new facility underscores Vivo’s commitment to strengthening its presence in India, leveraging local manufacturing capabilities to meet the growing demand for smartphones in the country.