Smartphone manufacturer Lava is planning to invest Rs 5 billion in local operations over three years, after which it will shift most or all of its production from China to India. At present, the company is in the process of finalising six locations in three states to accommodate its entire handset manufacturing ecosystem. Lava has also stated that the central government is providing 25 per cent subsidy on the same and various state governments are offering value added tax (VAT)-free operations, to facilitate domestic manufacturing.
The company is planning to start assembling devices at its Noida plant by April 2015. This plant is currently being used for repairs. The initial investment for the same is estimated to be Rs 200 million-Rs 300 million. The company estimates that the plant will hold a capacity to manufacture 200,000 units a month, which is projected to be ramped up to 1 million by March 2016.
In the quarter ended June 2014, Lava had an 8 per cent share of the overall phone market in India and 6 per cent in smartphones, according to market research company International Data Corporation.
