Vivo to start new manufacturing unit, aims for 10 lakh units export in 2023

Vivo, the third largest mobile player in India, is going to set up an additional manufacturing unit in the country as part of its expansion plan

April 13, 2023 02:38 pm | Updated 02:49 pm IST

Vivo to start new manufacturing unit, aims for 10 lakh units export in 2023

Vivo to start new manufacturing unit, aims for 10 lakh units export in 2023 | Photo Credit: Haider Ali Khan

Vivo, the third largest mobile player in India, is going to set up an additional manufacturing unit in the country as part of its expansion plan, also aiming to fulfil export goals more vigorously.

Sharing the second edition of the India Impact Report (IIR), 2023 with The Hindu, Yogendra Sriramula, Head-Brand Strategy at Vivo India, said the company has already invested ₹2,400 crore. The remaining ₹1,100 crore will be invested over the course of this year.

This investment is a part of Vivo’s India ₹3,500 crore Phase 1 plan, which is in turn part of an overall ₹7,500 crore phased investment in India.

“As part of this investment, by the beginning of the next year, we should be able to start phase one of our new manufacturing facility in Greater Noida. It spreads across 169 acres,” said Mr. Sriramula.

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The new unit is also believed to be generating new employment opportunities, but Vivo is unsure of the numbers as of now.

In the recent past, Vivo has shown a preference for MediaTek over Qualcomm as far as processors are concerned.

In the recent past, Vivo has shown a preference for MediaTek over Qualcomm as far as processors are concerned. | Photo Credit: Haider Ali Khan

Currently, Vivo has its own manufacturing unit in Greater Noida, UP, with a capacity of around 60 million phones annually. The facility employs more than 10,000 people. Vivo also makes phones for its sister concern brand, iQOO, at the facility.

For the record, Vivo claims to have sold 100 million phones in India till date.

“Out of this, one million phones were sold in rural areas through micro financing,” said Mr. Sriramula. Vivo sells through partners like Fusion.

In terms of localisation, Vivo claims complete assembly of its motherboards in India. Similarly, it has achieved 95% localisation in battery and 70% in chargers and earphones.

Vivo started exporting smartphones to Thailand and Saudi Arabia last year out of its Greater Noida-based plant. The Chinese smartphone maker now aims to take the export numbers to 10 lakh units in 2023.

Mr. Sriramula attributed the impressive performance of Vivo in India to its vast retail network. “We are present in about 70,000 stores, as we speak, and we have 650 exclusive Vivo stores,” he said.

To better understand market dynamics and the needs of users, Vivo has started working on a Design in India concept that involves a core team focused on industrial design and cameras.

In the recent past, Vivo has shown a preference for MediaTek over Qualcomm as far as processors are concerned. When asked about this, Mr. Sriramula responded, “There is a philosophy in Vivo called design-driven thinking. So it’s not about putting a processor which boasts the highest clock speed. It’s about tuning this whole system so that it delivers the best output to you.”

Currently, Vivo has its own manufacturing unit in Greater Noida.

Currently, Vivo has its own manufacturing unit in Greater Noida. | Photo Credit: Haider Ali Khan

Vivo will launch its next premium flagship series X90 soon, which will feature MediaTek processors.

Speaking about affordable 5G smartphones, the Head of Brand Strategy told us that Vivo understands that launching 5G phones will come with its own teething issues.

“The solutions need to be seamless; otherwise, the phone might get heated up too soon, and the battery might die. You might have the technology, but one might not be able to use it,” he said.

“Today we have 20+ phone models, which are already operational with 5G and compatible with both SA and NSA,” he explained.

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