Lava International has recently shared a big announcement with the Economic Times media regarding its commencement of the starting production of Nokia and Motorola branded smartphones through the local manufacturing platforms. This is the company’s new strategy to build up its supply chain ecosystem in India.
The chairman and managing director of the company, Hari Om Rai told Economic Times “We have plans to partner with companies that can share supply chains. We are making smartphones for Motorola and Nokia [HMD Global]. All Nokia smartphones are by Lava. We are combining their supply chain with us. All agreements are in place. We want to work with important companies that are from outside of the ecosystem in India so that their supply chain can be combined.” He further added that the company has started its expansion under the PLI scheme and is in talks with various brands. “We will be able to meet the PLI target for this year. The company is also in talks with all three telecom operators for design and manufacturing of smartphones. We have reached an advanced level of talks with one of the telcos. Phones will be co-branded but will be subsidised by the telco.”
According to Lava, the partnerships are planned and should help both the brands to pay more attention and to take care of the after sales services of both the brands.
Lava is expecting a drastic growth since last year to this year through the business it gets from the government and enterprise segment which was Rs. 70 crore last year to approx. Rs. 300 crore this year.
For the past three years, Lava has been working on upscaling its manufacturing potential. The company invested more than Rs. 2,600 crore in the year 2018 in its manufacturing units in order to reach a production capacity of 21.6 crore units in the next five years to maximize on manufacturing sub Rs. 10,000 smartphones.
Apart from this, Lava also has India’s first mobile devices design centre to improve the mobile manufacturing ecosystem in the country and attract component players. Lava put in an initial investment of Rs. 250 crore in this to design budgeted smartphones for their brand and as well as for other companies.
PLI better known as Production Linked Incentive Scheme was launched by the Government of India in order to enhance manufacturing in India. The name of the shortlisted companies under this scheme has been announced wherein 16 global and domestic mobile phone and electronic component makers, including Lava, Samsung, Micromax are eligible for the support.