Chinese smartphone manufacturing firm Vivo revealed plans of investing more than $571 million to establish a second production facility in India. The establishment of its second facility is also expected to double the company's workforce in the country to over 20,000 employees over the next five years.
The substantial investment is meant to further boost the company's presence in the world's second-largest smartphone market. The new facility is expected to increase the company's domestic output for its more popular models. Vivo India CEO, Chen Zhiyong, mentioned that the new plant should be ready for production by May or June next year.
The Chinese firm entered the Indian market in 2015 with the establishment of its first manufacturing plant. Its existing facility has around 9,900 workers and is capable of churning out up to 25 million units per year.
Chen explained that the company's first manufacturing facility has already reached its saturation point and that a second factory was now needed. Apart from producing models for the Indian market, units produced in its second plant will be sent to neighboring countries such as Indonesia.
The new factory will be located on a parcel of land acquired by Vivo, which is adjacent to its existing manufacturing plant in Uttar Pradesh. Vivo has reportedly already broken ground and construction on the new plant is underway.
Vivo has been very aggressive in its push to grow its brand recognition in India. The Chinese firm's strategy has so far proven to be effective as it has become the third-largest smartphone vendor in the country. However, Vivo does face very stiff competition from other major players such as Samsung and Xiaomi.
For the third quarter of this year, India saw total smartphone shipments of more than 46.6 million units. This was a 26.5 percent increase when compared to the same period last year. Over the same period, Vivo reported strong year-on-year growth, mainly fueled by the sales of its more affordable smartphone models.
Earlier this month, Vivo CEO Shen Wei mentioned during his visit to India that the company intends to become more than just a smartphone manufacturer. Shen explained the firm's five-year global strategy, which will involve the release of products such as financial services platform, online services, and Internet of Things (IoT) devices.
Sources close to the company's operations have hinted that Vivo could launch its iQOO brand in India. The new brand has proven to be very popular in China. When asked about the launch of the brand, Shen refused to disclose any more details.
