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Oppo, Vivo make big call, to invest Rs 2,000 crore each in UP

Economic Times:  October 26, 2016

New Delhi: Chinese smartphone companies Oppo and Vivo plan to invest a combined Rs 4,000 crore in Uttar Pradesh to build separate manufacturing complexes as part of their expansion plans in India.

The two companies are keen to set up large-scale campuses, replicating their China models, which will have manufacturing plants, space for suppliers and accommodation for staff.

“Oppo is almost finalised… 200 acres... they will bring Rs 1,000 crore by themselves, while Rs 1,000 crore investment will come through their vendors,” said Sanjiv Saran, information technology secretary of Uttar Pradesh. “Vivo is also asking for 200 acres of land. They have seen the plot, but have some problems with that…we are sorting that out. Their investment will also be to the tune of Rs 2,000 crore,” he added.

Land for the two companies may be allotted by the UP government in Greater Noida.

Oppo and Vivo are already among India’s top 10 smartphone companies by volume market share, although they are relative newcomers. Manufacturing in India will help them bring products to the market faster and offer devices at lower prices.

The two companies have been among the more aggressive smartphone players in the lead up to this festive season, spending Rs 80-100 crore each, double of what they did last year, on marketing. Their plans for India include developing townships on the proposed campuses. Oppo plans to set up accommodation for 30,000 people

“We are in talks with the UP government and will confirm the details at the appropriate time,” said Sky Li, head of India operations at Oppo.

“The state government has been very accommodating to our needs and we are in touch with them for future requirements that will help us in enhancing capacity and in boosting our ability to meet the growing demand for Oppo phones in India,” Li added.

Vivo declined to comment.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.