Chinese manufacturer Vivo plans to pump in Rs 7,500 crore over the next few years to sharply expand production capacity in the country, initially for the domestic market and later for exports, a top executive said. This is one of the largest investments into manufacturing by a smartphone maker.
“We foresee India being an important strategic market for us, so we are increasing our investment from Rs 4,000 crore to Rs 7,500 crore, which will be done over a few years,” Nipun Marya, director of brand strategy at Vivo India, told ET.
The country’s third largest smartphone player after Xiaomi and Samsung aims to quadruple its present annual capacity of 25 million phones a year, to more than 100 million devices, part of which could also be exported at a later stage.
Marya said the new investment would create over 40,000 jobs over the next 10 years. The new plant, backed by China’s BBK Electronics, would come up in Greater Noida. The company estimates 40-50% on-year growth by units shipped, prompting capacity expansion plans. “We’re running at full capacity and all production is meeting domestic demand,” Marya said.
Local production means better pricing and control over the supply chain, besides quicker time to market — all critical for success amid intense competitive, analysts said.
The first phase of expansion is expected to add 8.4 million units to annual capacity, creating more than 2,500 jobs, Marya said.
“Enhanced smartphone production capacities will help Vivo cater to increasing demand in India,” said Prabhu Ram, head, intelligence group, CMR.
Source: Economic Times