Chinese smartphone manufacturer Vivo is making significant strides in India with the construction of a new plant in Greater Noida, projected to create over 5,000 jobs. This development aligns with Vivo India’s strategic initiative to boost exports, driven by the increasing demand from its operations across 16 countries.
Vivo Mobile India’s new facility in Greater Noida marks the company’s second phase of investment under Prime Minister Narendra Modi’s Make in India initiative, injecting a substantial Rs 4,000 crore into the project. This expansion aims to position the Noida plant on par with Vivo’s other two major manufacturing bases in China. Initially, the company plans to invest Rs 800 crore in the new facility, excluding the cost of the land. The plant is slated to become operational by December 2019.
The existing Vivo manufacturing plant in Greater Noida, which spans 50 acres, already employs over 5,000 individuals and was established with an investment of Rs 300 crore. This facility has successfully produced most of the mobile components locally, showcasing Vivo’s commitment to local manufacturing. Over the past year, Vivo has been negotiating with the Uttar Pradesh government to acquire additional land to further increase its production capacity.
Nipun Marya, Vivo India’s Director of Brand Strategy, highlighted that the new plant would bolster Vivo India’s efforts to scale up exports. “The plant will support our India demand… it will cater to Vivo’s expansion through exports as we are already present in 16 countries,” Marya told the Economic Times. The existing Greater Noida facility has reached its full capacity, prompting the need for increased production to meet the growing demand. Vivo aims to ramp up its production capacity to 25 million units annually and enhance component manufacturing capabilities.
In the fiscal year 2018, Vivo India demonstrated remarkable growth, as reflected in the Registrar of Companies filings. Vivo India posted a year-on-year growth of 77.6%, with revenues reaching Rs 11,179.3 crore, the highest among Chinese companies operating in India. Vivo’s impressive growth underscores its significant footprint in the Indian market, alongside its plants in China and Indonesia.
The Indian smartphone market, valued at over Rs 1.5 lakh crore, is heavily dominated by Chinese mobile companies. A recent report indicated that Indian consumers doubled their spending on the top four Chinese brands—Xiaomi, Oppo, Vivo, and Honor—to over Rs 50,000 crore in FY18. This trend highlights the growing influence of Chinese brands in the Indian market.
Vivo’s expansion is part of a broader trend among Chinese smartphone manufacturers to invest in local manufacturing, spurred by the Make in India initiative. This move is creating substantial employment opportunities in India. Brands such as Xiaomi, Oppo, Vivo, and Honor, along with other Chinese companies like Lenovo-Motorola, OnePlus, and Infinix, collectively account for more than 50% of the total Indian smartphone market by sales. The Make in India policies have been instrumental in encouraging these companies to establish manufacturing bases in India, thereby contributing to the country’s economic growth and job creation.
In conclusion, Vivo’s new plant in Greater Noida represents a significant investment in India’s manufacturing capabilities and job market. By enhancing its production capacity and focusing on exports, Vivo is poised to meet the rising demand from its international operations while contributing to India’s economic development. This expansion not only reinforces Vivo’s commitment to the Indian market but also underscores the broader impact of the Make in India initiative in fostering local manufacturing and employment. As Vivo and other Chinese smartphone manufacturers continue to invest in India, the country is set to strengthen its position as a key player in the global smartphone industry.
