Amid mounting regulatory pressures, Chinese smartphone manufacturer Vivo will be selling one of its factories in Greater Noida to Bhagwati Products, the parent company of Micromax. With a revenue of around Rs 30,000 crore in FY23, Vivo led the Indian smartphone market in sales in the January-March period of this year.
Bhagwati will contract manufacture smartphones at the factory in collaboration with the Chinese firm’s original design manufacturing partner Huaqin.
Vivo may be looking to streamline its operations, focus on other strategic markets, or reallocate resources more efficiently within its business model. Bhagwati Products, known for manufacturing electronics, likely sees this acquisition as an opportunity to expand its production capacity and enhance its market position.
Selling the Greater Noida factory could allow Vivo to concentrate on other core areas of its business, potentially investing more in R&D, marketing, or other strategic markets.The proceeds from the sale could provide Vivo with additional capital to reinvest in growth opportunities or bolster its financial stability.
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