Vivo raises production capacity in India

The Chinese smartphone maker has invested around US$28.5 million in expanding manufacturing capacity at a plant on the outskirts of Delhi

August 16, 2018

The 30,000 sq meter facility is Vivo’s 7th largest assembly facility outside China, and has been set up in line with the ‘Make In India’ products

The plant, which has already received investment of around US$42.7 billion, has a maximum production capacity of 2 million units per month

The plant employs more than 5,000 people and has an annual production capacity of around 25 million products, along with a testing lab

The company’s increased investment is expected to help boost sales in India where it currently occupies the third largest share at 12.6 per cent

Vivo Communication Technology has expanded production capacity in India at an investment of around US$28.5 million, according to media reports citing an official statement on August 16. The Chinese smartphone maker has added new capacity at its plant in Greater Noida, on the outskirts of Delhi. The 30,000 sq meter production facility is Vivo’s 7th largest assembly facility outside China, and has been set up in line with the Government of India’s ‘Make In India’ initiative. The plant, which has already received investment of around US$42.7 billion, has a maximum production capacity of 2 million units per month.

The plant employs more than 5,000 people and has an annual production capacity of around 25 million products, along with a testing lab. The company has added surface-mount technology (SMT) lines to the plant which will improve operational efficiency. Vivo has been producing its flagship model NEX, along with a variety of other models at the India plant. The company’s increased investment is expected to help boost sales in India where it currently occupies the third largest share at 12.6 per cent, after China’s Xiaomi’s and South Korea’s Samsung that held 29.7 per cent and 23.9 per cent at mid-2018, respectively.

Driven by a vast and growing market as well as high-margin innovation and manufacturing opportunities, a number of foreign smartphone manufacturers have increased their Indian investment. While Samsung in July 2018 opened the world’s largest mobile phone manufacturing plant at Noida, Xiaomi in August 2018 announced plans to increase its investment in India, combining activities across internet services, startup investments as well as India-specific research and development. China’s OnePlus is planning to move its global servicing operations to India, besides setting up its second headquarters to India.

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