While the talks have progressed significantly, with a focus on valuations, a final deal has not yet been reached. MoneyControl’s sources indicate that Vivo is seeking a higher valuation than what the Tata Group is currently offering.However, the Tata Group remains interested in the potential acquisition.
Vivo has been under scrutiny by Indian authorities for alleged tax evasion and violations of the Prevention of Money Laundering Act (PMLA).
Oppo, another smartphone brand of China’s BBK Group, is also said to be in talks with local players to divest its Indian unit.
The Indian government is keen on ensuring that any joint venture between a Chinese smartphone company and an Indian partner involves at least a 51% stake held by the domestic firm. Additionally, the government wants the joint venture to have local leadership and distribution.
Micromax-parent takes over Vivo’s factory, Chinese manufacturer moves its operations
In a related development, Vivo’s manufacturing factory in Greater Noida has been taken over by Bhagwati Products, the company behind the Micromax brand. Bhagwati Products has started hiring staff and will soon begin producing smartphones for Vivo through its original design manufacturing joint venture with Huaqin, which is awaiting government approval, as reported by MoneyControl.
Meanwhile, Vivo has relocated its manufacturing operations to a new 170-acre factory in Greater Noida.
The Tata Group’s interest in acquiring a majority stake in Vivo India aligns with its broader strategy to expand its presence in the electronics manufacturing sector. The conglomerate had previously acquired the Indian operations of Taiwanese electronics manufacturer Wistron and is also reportedly in talks with Apple contract manufacturer Pegatron to secure a majority stake in its iPhone production unit near Chennai.
