NEW DELHI: Chinese tech giant Vivo will invest Rs 1100 crore by the end of 2023 to increase its manufacturing capacity in India. The company, which started exporting smartphones in 2022, aims to export more than one million Made in India smartphones in 2023.
"The year 2023 marks the milestone of our nine-year journey in India. Since our inception, India has continued to be a strategic market for us. Backed by technologically advanced and innovative offerings, we have won the hearts of proud owners of 100 million Vivo smartphones," said Yogendra Sriramula, Head, Brand Strategy, Vivo India.
Vivo has plans to invest a total of Rs 7500 crore in India. The smartphone maker said it is on track to complete the phase-I investment of Rs 3,500 crore by the end of 2023, which will allow it to commence production in its new manufacturing facility in Greater Noida by early 2024. The new facility spreads across approximately 169 acres and will have annual capacity to produce approximately 120 million smartphones in the future, upon completion of all its phases.
Vivo, the third largest mobile player in India (13 April 2023) launched the second edition of its India Impact Report.
"We strongly believe that boosting manufacturing capabilities is vital to bring the nation on the global map and expanding/growing our plant in India is our step forward in that direction. The second edition of Vivo India impact report is a testament to our steadfast commitment to India and its people and we are excited to grow as the nation grows," said Yogendra Sriramula.
In India, Vivo has already invested Rs 2,400 crore, and a further Rs 1,100 crore is expected to be invested by the end of 2023 to increase its manufacturing capacity. The company said in alignment with the government initiative Atmanirbhar Bharat, 100% of Vivo's motherboard assembly is happening in India. It procures 95% of its battery and 70% of its charger components locally. Also, every Vivo smartphone that is sold in India is made in India.
"We have reiterated our unwavering commitment to India by exporting the first shipment to Thailand and Saudi Arabia. We are proud that we are on the track to exporting 1 million smartphones in 2023," added Sriramula.
Last year, the company faced legal hurdles in India. The Enforcement Directorate said Vivo illegally transferred a whopping Rs 62,476 crore to China in order to avoid payment of taxes in India.