Lava to soon shift Manufacturing Base From China to India

Lava, the country's fourth-biggest smartphone maker, could become the first local mobile handset company to start domestic production as Prime Minister Narendra Modi's 'Make-in-India' push helps the country to become an attractive alternative to China as a manufacturing base.

Starting in April, Lava will assemble devices at its Noida plant, which is now used for repairs, with an initial investment of Rs. 20-30 crore. By then, it may have the capacity to make 200,000 units a month, which is projected to be ramped up to 1 million by March 2016.Lava had an 8% share of the overall phone market in India and 6% in smartphones in the April-June quarter, according to market research company International Data Corporation. Vendors sold 63.21 million phones in the country during the quarter, with smartphones clocking an 84% increase in sales to 18.42 million units.

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 company, which sells Lava and Xolo branded phones, plans to spend Rs 500 crore in local operations over three years, after which it will shift most or all of its production from China to India.

Source: Economic Times