NEW DELHI: In one of the first instances of a top Chinese company substantially expanding its investments in India amid Indo-China diplomatic tensions, smartphone major Vivo has decided to pump Rs 5,100 crore into the country, including for a new 169-acre second factory in Greater Noida.
The company looks to double production capacity to 120 million devices annually over next few years, apart from beginning exports with a target to ship out one million devices this year itself.
Vivo, which like other Chinese companies such as Xiaomi and Oppo has facedregulatory heat in India as relations with China got tense on both border and diplomatic issues, is now looking at enhanced business opportunities in the country, while also falling in line with the government’s persistent demand to begin exports.
“The confidence that we have on India is very high, and we want to invest here in the future,” Yogendra Sriramula, director of brand strategy at Vivo India, told TOI as he outlined an “aggressive” expansion plan for the company, which closed 2022 with a market share of 16% on sales of 23 million units (IDC numbers).
“Vivo has plans not only for growing the manufacturing footprint, but also for growing retail presence and design research,” Sriramula said. “We have a significant stakeholding in India as weare present across 70,000 multi-brand retail points, apart from running over 650 exclusive stores. At our factory, we have around 10,000 people working for us and this is only going to increase as we expand further.”
The company has a factory in Greater Noida, which is built on 14 acres. The second factory is coming up in the same area, and is likely to begin production from beginning of next year.
Sriramulu said of the Rs 7,500-crore investment that the company had originally planned for India, Rs 2,400 crore has already been invested, while an additional Rs 1,100 crore will be invested by close of this year.
The company looks to double production capacity to 120 million devices annually over next few years, apart from beginning exports with a target to ship out one million devices this year itself.
Vivo, which like other Chinese companies such as Xiaomi and Oppo has facedregulatory heat in India as relations with China got tense on both border and diplomatic issues, is now looking at enhanced business opportunities in the country, while also falling in line with the government’s persistent demand to begin exports.
“The confidence that we have on India is very high, and we want to invest here in the future,” Yogendra Sriramula, director of brand strategy at Vivo India, told TOI as he outlined an “aggressive” expansion plan for the company, which closed 2022 with a market share of 16% on sales of 23 million units (IDC numbers).
“Vivo has plans not only for growing the manufacturing footprint, but also for growing retail presence and design research,” Sriramula said. “We have a significant stakeholding in India as weare present across 70,000 multi-brand retail points, apart from running over 650 exclusive stores. At our factory, we have around 10,000 people working for us and this is only going to increase as we expand further.”
The company has a factory in Greater Noida, which is built on 14 acres. The second factory is coming up in the same area, and is likely to begin production from beginning of next year.
Sriramulu said of the Rs 7,500-crore investment that the company had originally planned for India, Rs 2,400 crore has already been invested, while an additional Rs 1,100 crore will be invested by close of this year.
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