Chinese smartphone maker Vivo is set to open one of India’s largest mobile phone manufacturing plants in Greater Noida next month. The facility will have an annual production capacity of 120 million devices, backed by an investment of over ₹3,000 crore, according to The Economic Times.
Previously, Vivo engaged in discussions with the Tata Group, the Murugappa Group, and Indian contract manufacturer Dixon Technologies for a potential joint venture. However, these negotiations stalled due to disagreements over valuation. Vivo is now actively seeking a local joint venture partner to manage its manufacturing operations in India.
Vivo recently vacated its leased manufacturing facility with an annual capacity of 40 million devices. This plant has now been acquired by Bhagwati Enterprises, the manufacturing unit of Micromax Informatics. The new Vivo facility, spanning 170 acres in Greater Noida, aims to produce 120 million units annually.
Indications suggest Dixon Technologies could be a potential joint venture partner. Sources at Dixon mentioned that the company is in early discussions with Vivo, exploring an agreement similar to one made with Transsion Holdings for manufacturing operations. In April, Dixon announced plans to acquire a majority stake in Ismartu India, a manufacturing unit owned by Transsion Holdings, with an initial purchase of a 50.10 percent stake for ₹238.36 crore in cash.
Despite months of discussions with several Indian companies, Vivo has faced challenges in reaching an agreement due to valuation, management control, and other issues. Sources indicate that Vivo’s valuation must be determined by an independent third party, ensuring no forced sale of shares at a discounted price due to the significant investments the company has made in the Indian market.
