18 October 2022
Lava International Ltd., an Indian smartphone manufacturer, is in advanced negotiations to establish an electronics manufacturing business in South Asia with Huaqin Technology Co. of China.
According to a letter from Lava to India's technology minister, the company would seek to secure contracts from US and Chinese clients for the research and development, design, and production of electronics products.More than 100,000 people would be employed by the business, which, according to Lava's letter, would "place India on the world map for design, supply chain, and production." "It will help bring the ecosystem of the supply chain and much-needed technologies to India."
With more than 33,000 people and $13 billion in sales the previous year, Shanghai-based Huaqin creates smartphones, laptops, tablets, and wearables for clients like Samsung Electronics Co., Lenovo Group Ltd., Amazon.com Inc., and Acer Inc. Through a relationship with Lava, Huaqin would have greater access to one of the key electronics markets with the fastest rate of growth in the world, which has a cheap labour pool that rivals that of China. The agreement would provide Lava with the funding and knowledge it desperately needs as it strives to become a dominant force in the electronics industry.
Due to its partnership with a domestic manufacturer, the Lava-Huaqin business would have an advantage over other Chinese producers.
In their efforts to compete with rivals like Foxconn Technology Group, the closely held companies would have more clout thanks to the agreement.
The Taiwanese powerhouse, which assembles phones for Apple Inc., is one among the electronics firms that have expanded their production capabilities in India to diversify their markets outside China and take advantage of incentives as part of Prime Minister Narendra Modi's plans to turn India into a manufacturing hub.
