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Vivo looking to expand smartphone manufacturing facility in Greater Noida
TT Correspondent |  |  14 Aug 2018

China's Vivo is looking to expand its smartphone manufacturing facility in Greater Noida further to create more production capacity, a move that will give its local production a big push in its bid to bolster its position in an intensely competitive smartphone market.

Nipun Marya, director of brand strategy at Vivo India said "We had invested around Rs 100 crore in November 2016, then till March 2018, we have invested over Rs 200 crore more in this manufacturing facility. We are looking to further expand this unit in near future".

“There's a plan to create more capacity under the new expansion, including more SMT lines,” he added.

Vivo's bigger rivals Samsung and Xiaomi have already expanded their manufacturing facilities to create capacity in the last two quarters, which will allow them to offer devices cheaper besides helping them to go to the market faster.

Xiaomi had expanded its manufacturing facilities in India, and now has six manufacturing facilities for smartphones and one unit for power banks spread across Andhra Pradesh, Tamil Nadu and Noida (UP). Its component partner, Holitech, had last week finalized plans for a new plant at Tirupati with an investment of $200 million (Rs 1400 crore) to locally produce camera modules, touch screen panels, TFT (thin film transistors), flexible printed circuits and fingerprint modules exclusively for Xiaomi.

Samsung, on the other hand, had also launched its new mobile phone manufacturing facility in Noida to double its current capacity for mobile phones in Noida from 68 million units a year to 120 million units a year.

Vivo, on its part, has also just finished the second phase of manufacturing expansion by investing over Rs 200 crore to set up a surface-mount technology (SMT) unit for printed circuit boards (PCB) assembly in the Greater Noida facility, taking the overall manufacturing-related investment to over Rs 300 crore in India.

The smartphone maker is already making its high-end camera phone "NEX" along with other models at the unit, which has a production capacity of "Finished Good Assembly" of 2 million per month whereas SMT production is 1.8 million per month. Currently, Vivo has more than 5000 dedicated personnel working at the Greater Noida manufacturing facility, providing end to end products.

"From manufacturing the PCB, assembling the device and production of accessories including earphones, battery etc through our partners, the Greater Noida facility in is already manufacturing almost all essential parts for our mobiles," Marya said.

Vivo was previously in touch with the Uttar Pradesh government to further invest Rs 2,000 crore to build a separate manufacturing complex and had asked for 200 acres of land.

"Yes, the Tech Park is work in progress and we will soon be revealing further information about this investment in the months to come. This campus, like the Greater Noida facility, will serve as another testament to our focus in the Indian market," Marya said.

Vivo has made a strong comeback in the quarter ended June after suffering a decline in its smartphone market share in the previous quarter. It attributed its improved performance in India to its broader new strategy to become an all-segment player. Vivo cornered 12% market share in the April-June quarter of 2018, more than doubling its share from 5.8% in the previous quarter, according to data from Counterpoint Research.

Marya, citing GfK data, claimed that Vivo was the number one player in the Rs 20,000-Rs 30,000 price category with over 50% market share, and had over 60% share in the Rs 20,000-Rs 25,000 price segment. “We want to ensure that we are putting right inputs in operations to get right output such as gaining market share,” he added.

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