Vivo is set to open a new manufacturing plant in Greater Noida, India, as reported by the Economic Times. This facility, touted as one of the nation’s largest for mobile phone production, will boast an annual capacity of 120 million devices.
Vivo’s Massive Scale and Strategic Location
Spanning 170 acres, Vivo’s upcoming facility represents an investment exceeding Rs. 3,000 crore and is scheduled for inauguration this July. It’s being likened to Samsung’s current largest mobile manufacturing plant in the country, operational since 2018 with a matching capacity of 120 million units annually.
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Earlier this month, Vivo relocated from its previous manufacturing unit, capable of producing 40 million devices per year. This site has since been taken over by Micromax Informatics’ unit, Bhagwati Enterprises, on a lease from Vivo.
Local Partnerships
Vivo is actively seeking an Indian partner to bolster its operations. Talks have been held with several potential collaborators, including Tata Group, Murugappa Group, and Dixon Technologies, a leading Indian contract manufacturer, to establish a joint venture (JV) for managing its manufacturing endeavours.
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Sources familiar with the discussions at Dixon Technologies revealed that negotiations are ongoing but no agreements have been finalised yet. They mentioned Dixon’s interest in a partnership akin to the successful one it established with Transsion for manufacturing.
Meanwhile, Tata Group has expressed its focus on expanding manufacturing capabilities across the country through acquisitions and partnerships. A senior executive emphasised the group’s strategic interest in manufacturing facilities, underscoring their intent to explore all avenues for scaling up operations, including potential future discussions with Vivo.
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Implications for Indian Manufacturing
Vivo’s move to inaugurate this new facility signifies a significant investment in India’s manufacturing sector, promising to boost local production of mobile phones and potentially catalyse further industrial collaborations in the region.
