Chinese smartphone maker Vivo is set to open one of India’s largest mobile phone manufacturing plants in Greater Noida next month. This facility will boast an annual production capacity of 120 million devices, set up with an investment exceeding Rs 3,000 crore, according to The Economic Times.
Earlier Vivo had discussions with the Tata Group, the Murugappa Group, and Indian contract manufacturer Dixon Technologies regarding a potential joint venture. However, negotiations have stalled due to disagreements over valuation. Consequently, the company is now actively seeking a local joint venture partner in India to manage its manufacturing operations, the report cited sources as saying.
Recently, the company moved out of its leased manufacturing facility that had an annual capacity of 40 million devices. This plant has now been acquired by Bhagwati Enterprises, the manufacturing unit of Micromax Informatics.
Vivo’s new facility spans 170 acres in Greater Noida and has an annual manufacturing capacity of 120 million units.
Dixon Technologies: A potential JV partner.
Indicating a potential joint venture, the news report quoted sources at Dixon as saying that the company is in the early stages of discussions with Vivo. Dixon is reportedly exploring a potential agreement similar to the one it made with Transsion for Vivo’s manufacturing operations
In April, Dixon announced its plan to acquire a majority stake in Ismartu India, a manufacturing unit owned by Chinese phone maker Transsion Holdings. Dixon disclosed plans to initially purchase a 50.10 per cent stake in Ismartu India for Rs 238.36 crore in cash, with a future aim to increase its ownership to around 55 per cent, the report said.
The transaction is expected to be finalised by FY27.
The report quoted sources as saying that Vivo had been in discussions with several Indian companies for several months. However, they were unable to reach an agreement due to disagreements over valuation, management control, and other issues.