Vivo optimistic about potential in India, plans to invest Rs 4,000 crore
Most of the investment will go into setting up a new manufacturing and assembly plant.
Published:Fri, November 30, 2018 9:42am
Chinese smartphone maker Vivo has big plans for India, including a massive Rs 4,000 crore investment into its operations in the country. As part of its implementation of the Government of India's 'Make in India' directives, Vivo will be setting up a second plant using a large part of the capital infusion, according to Vivo India Director of Brand Strategy Nipun Marya in an interview with Economic Times.
According to the report, Vivo will be setting up its second plant close to the existing facility in Great Noida, Uttar Pradesh. The existing plant has reached full capacity, and the second plant will be used to support growth in the country, as India's smartphone space continues to grow rapidly with more and more buyers opting for newer and better smartphones over feature phones.
Vivo's strong offline dealership network helps it gain strong visibility and accessibility to traditional buyers, who prefer to go into a store and purchase their next phone. Consistently ranked among the top five smartphone makers in India by shipments, Vivo's push to cement its position in India seems on point. Apart from setting up the new plant, Vivo is also localizing component manufacture, reducing its import bill.
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The Make in India initiative has seen most major players opt for either setting up local manufacturing facilities or tying up with third-party plants to get devices made locally. Increasing import duties means that manufacturers must adopt localization in order to continue to cater to the growing demands of the Indian market. Samsung recently opened up the 'world's largest mobile factory' in Noida, in order to boost its manufacturing capabilities in the country.