Vivo's new Greater Noida manufacturing unit to help double production capacity; to appoint local leadership

In the 2023 Indian Impact Report issued by the company to mark its 10th anniversary in the country, the top executive stated that Vivo has invested Rs 3,500 crore in India.

Vivo India's new manufacturing unit, to be fully operational late this year, will help it double its production capacity, Chief Executive Officer Jerome Chen said in a report released on July 30, adding that the Chinese smartphone maker is focusing on appointing local leadership and working on increasing levels of value addition in smartphones.

"We are proud to be starting our operations at a new manufacturing facility. This facility, once fully operational, will give us the option of doubling our manufacturing capacity while reinforcing our commitment to 'Atmanirbhar Bharat,' Chen said.

In the 2023 Indian Impact Report issued by the company to mark its 10th anniversary in the country, the top executive stated that Vivo has invested Rs 3,500 crore in India.

The report also mentioned that over 150 million smartphones have been manufactured in Greater Noida, Uttar Pradesh.

The report indicates that Vivo has produced 25 million 5G phones and exported devices worth Rs 400 crore since 2022.

The handset maker, whose market share has surged surpassing major Korean company Samsung, plans to empower Indian leaders to lead local operations and enhance its focus on India-specific product design. This will involve localizing designs, camera effects, and product experience.

Vivo leads with a 19 percent share in the Indian market. It has over 70,000 retail outlets, over 650 exclusive stores, and over 650 service centres. The report revealed that the company generated about 200,000 jobs in India, directly and indirectly."

Vivo's old manufacturing factory in Greater Noida was taken over by Bhagwati Products (Micromax). The latter has begun hiring staff and will soon start producing smartphones through its original design manufacturing joint venture with Huaqin. This joint venture between Bhagwati and Huaqin is awaiting approval from the Indian government, Moneycontrol reported on June 15.

READ MORE: Tata Group eyes majority stake in Vivo India unit; Bhagwati takes over Greater Noida factory

"The past decade focused on growth and consolidation in the fierce Indian market. In the next decade, we will focus on localising multiple areas, including manufacturing, the local value chain and distribution. We have started designing phones that meet our consumers' local tastes and preferences under our 'Design for India' initiative," the top executive said.

The company announced its plans to increase the local value addition for its smartphones by building a new factory in 2024, using advanced technology in local production, and steadily increasing the local production of key components such as optical image stabilizers, camera modules, memory, and OLED displays.

According to the report, the indigenisation of key components has led to an increase in local sourcing and all motherboards used in Vivo smartphones were made in India. At the same time, packaging material and over 90 percent of fingerprint sensors, batteries and chargers were sourced locally.

"The next decade holds great promise for India as it emerges as a powerhouse of global economic growth... the government has made substantial strides in bolstering infrastructure, enhancing governance, fortifying the financial sector and fostering progressive policies. As a result, the market is witnessing premiumisation, accompanied by rapid technological adoption and an escalating demand landscape," he said.