Chinese smartphone giant Vivo in talks to sell stake in Indian factory to Tata Group: report

Conglomerate Tata Group is considering the acquisition of a majority stake in Vivo’s Indian unit, and the talks are in ‘an advanced stage’

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Vivo’s potential deal with Tata comes amid New Delhi’s growing scrutiny of Chinese businesses operating in India. Photo: Shutterstock

Published: 8:00pm, 17 Jun 2024

Chinese smartphone giant Vivo is said to be in talks to sell its stake in a factory in India to domestic conglomerate Tata Group, according to a report by local media Moneycontrol, as the South Asian nation tightens its scrutiny of foreign businesses operating in the country.

Tata is considering the acquisition of a majority stake in Vivo’s Indian unit, and the talks are in “an advanced stage”, Moneycontrol reported on Friday, citing an anonymous source. Vivo, according to the source, is seeking a high valuation for its asset.

Vivo – China’s fifth-largest smartphone vendor in the first quarter, according to research firm IDC – declined to comment on the reported negotiations. Tata did not immediately respond to a request for comment on Monday.

The report also cited other sources who said that Vivo’s factory in Greater Noida, a city in the northern state of Uttar Pradesh, has been sold to Indian company Bhagwati Products. The factory is expected to start production for Vivo under a joint venture with Chinese electronics contract manufacturer Huaqin Technology, while government approval remains pending, according to the report.

Indian multinational conglomerate Tata Group, which manufactures various smartphone components for Apple, is expanding its domestic iPhone assembly operations. Photo: Shutterstock

Vivo’s potential deal with Tata reflects the growing ambitions of the Mumbai-based cars-to-software conglomerate, which last year took over the iPhone factory of Taiwanese electronics contract manufacturer Wistron in the southwestern state of Karnataka.