Lava is said to be planning on shifting its manufacturing base from China to India. According to the
Economic Times, one of the major factors behind this shift is PM Narendra Modi’s “Make-in-India” initiative.
According to the report, Lava will spend Rs 500 crore in the next three years, as it shifts its manufacturing base to India. The company will use its Noida plant, which is currently used for repairs, to manufacture new devices. It will initially invest Rs 20-30 crore, and the plant will have the capacity to manufacture up to 200,000 units a month. This is set to be ramped up to one million by March 2016.
In a chat with ET, Hari Om Rai, Chairman and Managing Director of Lava International said, “We are just about to finalize six places in three states to accommodate the entire ecosystem around handset manufacturing, one of which will house the company’s plant as well.”
“The central government is giving 25 percent subsidy and various state governments are offering VAT-free operations, among others,” he added.
Modi’s initiative is aimed at making it easy for manufacturers to set up their base in the country and make India a preferred alternative to China for manufacturing purposes. The focus is on creating more job opportunities and subsequently aid in the country’s growth.
The publication further adds that in addition to Lava, other manufacturers like Intex, Micromax and Karbonn too are looking at shifting their manufacturing to India.
Lava is currently the fourth biggest smartphone vendor in India lagging behind Samsung, Micromax, and Karbonn. According to a recent IDC report, Samsung held 29 percent of the market share, Micromax 18 percent, Karbonn eight percent, and Lava six percent. In addition to building its own branded smartphones, Lava is one of Google’s partners who will soon launch an Android One smartphone. It is also one of Microsoft’s partners and has launched Windows tablet and smartphones under its Xolo brand