Vivo to Invest Rs 5,100 Crore in India for Second Factory and Expansion Plan


Chinese smartphone maker Vivo has announced plans to invest Rs 5,100 crore ($689 million) in India, including in a new factory in Greater Noida. The move comes amid heightened diplomatic tensions between India and China. The investment is part of a broader expansion plan for Vivo in India, which includes doubling its annual production capacity to 120 million devices over the next few years and beginning exports. The company is targeting exports of one million devices in 2023.

Despite regulatory heat in India for Chinese firms such as Xiaomi and Oppo, Vivo has confidence in the Indian market and sees significant growth potential. The company closed 2022 with a 16% market share on sales of 23 million units, according to IDC data. Vivo plans to grow its manufacturing footprint and retail presence, as well as expand its design research.

Yogendra Sriramula, director of the brand strategy at Vivo India, said, "We have a significant stakeholding in India as we are 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 will only increase as we expand further."

Vivo's new factory will be built on a 169-acre site in Greater Noida and is expected to begin production in early 2024. The company already has a factory in the same area, built on a 14-acre site. Vivo had originally planned to invest Rs 7,500 crore ($1 billion) in India. Of that, Rs 2,400 crore ($324 million) has already been invested, and an additional Rs 1,100 crore ($148 million) will be invested by the end of 2023.

India has become an attractive market for Chinese investors, as the country has been ranked among the top five industries for overseas funds in the last fiscal year. The renewable energy sector in India attracted a 5% share of all inflows from April to September 2022, compared with 3.3% in the same period a year ago. India's focus on decarbonization has also been a factor in attracting investment, with companies like Serentica Renewables attracting large sums from private equity firms like KKR & Co.

As India seeks to become a global manufacturing hub and attract foreign investment, Chinese firms like Vivo want to capitalize on the country's potential. Vivo's investment in a second factory in Greater Noida signals its commitment to expanding its business in India, despite diplomatic tensions between the two countries. As Vivo and other Chinese firms look to grow their footprint in India, they must continue to navigate regulatory challenges and geopolitical tensions.

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