Lava to Setup Manufacturing Plant in AP under ‘Make in India’ Initiative

In September, three Indian smartphone manufacturers Micromax, Karbonn and Celkon had signed MoU’s with the Government to set up their plants in Sri City, AP. Today another Indian manufacturer Lava had joined the ‘Make in India’ bandwagon by announcing their plans to invest 500 crores in Andhra Pradesh. The company will set up their own manufacturing plant at the Sri City, AP.

The dedicated mobile handset and electronics manufacturing facility will include several other manufacturing plants. Foxconn had already started production in their plant in Sri City while the manufacturing plant of Lava will be operational from 2017. Asus, the Taiwanese tech giant which had collaborated with Foxconn for manufacturing smartphone in India, will have their own plant by the end of 2016.

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The Sri City plant will generate employment for more than 12,000 people. It also had a manufacturing plant in Noida that has a capacity of manufacturing one million units per month. Few months ago, the company had announced their Make in India plans for the first time, where they will invest Rs.2,615 crores over the next seven years to set up two manufacturing units in India.

“Over the next few years, we plan to develop the entire manufacturing ecosystem in India and promote localisation of components,” said Sanjeev Agarwal, ‎Chief Manufacturing Officer, Lava Mobiles. He also added, “In Noida, we have already achieved manufacturing cost as competitive as that in China. Moreover, with our robust infrastructure, we are delivering products with 50 percent better quality as compared to products made in China.”

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Once both the plants start their production, there will be more than 18 million handsets produced per month. Lava with its 7% market share stands fourth in the top smartphone manufacturer list. Since most of the smartphone manufacturers are looking to start production in India, we can see some immense competition between the local players to compete against the international manufacturer. In the long term perspective, the companies can provide the devices at much cheaper price than that of imported units.