Lava, a smartphone maker, plans to partner with a Chinese company on an Indian project

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  • Lava International is an Indian maker of smartphones. The establishment of an electronics manufacturing business in the South Asian nation is the subject of discussions with China’s Huaqin Technology Co. In a letter to India’s Ministry of Technology, Lava stated that it was looking to get contracts with clients in the US and China for the R&D, design, and production of electronic products. The partnership’s talks are almost done.

The deal will empower companies looking to take on rivals like Foxconn Technology Group. The Taiwanese giant that assembles phones for Apple is diversifying beyond China and manufacturing in India to capitalize on a stimulus package part of Prime Minister Narendra Modi’s push to make India a producer. It is one of the electronics companies that has built capabilities.

Headquartered in Shanghai, the company has over 33,000 employees and last year’s sales surpassed his US$13 billion. Through partnerships with Vivo, Xiaomi Corp., Samsung Electronics Co., Lenovo Group Ltd., Inc. and Acer Inc. Lava, Huaqin is one of the world’s fastest growing major electronics markets. It gives you deep access to one. It’s a market with an abundance of cheaper labor than China.

For Lava, the deal will bring much-needed capital and know-how as the company aims to become a powerhouse electronics company. The company employs more than 100,000 people and “puts India on the world map in design, supply chain and manufacturing,” Raba said in the letter. “It will help bring the supply chain ecosystem and much-needed skills and technologies to India.”

A partnership agreement has yet to be finalized as details such as a stake have yet to be finalized, said the people, who asked not to be identified because the plans are private. The company is under close scrutiny by the Indian government, but is likely to receive approval because it enhances the country’s status as an electronics manufacturing hub and does not jeopardize national security.

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