Vivo India to commission new manufacturing unit this year, says CEO

Vivo India will commission its new manufacturing unit this year that will double its production capacity, chief executive officer Jerome Chen said in a report, as the Chinese smartphone maker focuses on appointing local leadership and increasing levels of value addition in the coming years.

“We are proud to be starting our operations at a new manufacturing facility. This facility, once fully operational, will give us the option of doubling our manufacturing capacity, while reinforcing our commitment to ‘Atmanirbhar Bharat,’” Chen said.

The company has manufactured 25 million 5G phones since 2022.

In an Indian Impact report 2023 issued by the company as it completes 10 years in the country, the top executive said Vivo has invested ₹3,500 crore in India till date, with over 150 million smartphones manufactured in Greater Noida, Uttar Pradesh. He added that Vivo has exported phones worth ₹90 crore in 2022 and ₹300 crore in 2023.

Vivo plans a two-pronged localisation approach for India. The company will look at empowering Indian leaders to spearhead local operations and strengthening its focus on India-centric design products by localising design, camera effects and product experience.

“The past decade focused on growth and consolidation in the fierce Indian market. In the next decade, we will focus on localising multiple areas, including manufacturing, the local value chain and distribution. We have started designing phones that meet our consumers’ local tastes and preferences under our ‘Design for India’ initiative,” Chen said.

Local value addition will be done by starting a new factory in 2024, introducing new technology in localisation, and constantly increasing localisation of critical components like optical image stabilisers, camera modules, memory and OLED displays.

According to the report, indigenisation of key components has led to an increase in local sourcing and all motherboards used in Vivo smartphones were made in India, while packaging material and over 90% of fingerprint sensors, batteries and chargers were sourced locally.

“The next decade holds great promise for India as it emerges as a powerhouse of global economic growth... the government has made substantial strides in bolstering infrastructure, enhancing governance, fortifying the financial sector and fostering progressive policies. As a result, market is witnessing premiumisation, accompanied by rapid technological adoption and an escalating demand landscape,” Chen said.

The smartphone maker, which leads with a 19% share in the Indian market, has more than 70,000 retail outlets, more than 650 exclusive stores and over 650 service centres. The company generated about 200,000 jobs in India, directly and indirectly.