Indian smartphone manufacturer Lava International held negotiations with China-based Huaqin technology, to advance plans in creating a manufacturing venture in India, reported Bloomberg.
In a note to India’s technology ministry seen by the news agency, the venture detailed it would compete to win contracts from US and Chinese customers for R&D, design, and manufacturing of electronic products. The tie-up is not yet sealed but is close according to the note.
Huaquin has over 33,000 employees with sales of over US$13 billion last year, reported Bloomberg. The company designed and manufactures a variety of tech devices including smartphones for brands such as Vivo Xiaomi, Samsung and Lenovo. Lava would be the gateway from Huaquin to tap into India, which is a growing manufacturing hub with cheaper labour.
A venture between the two companies would give it the scale to compete against Apple manufacturing partner Foxconn Technology, which has also ramped up manufacturing in India to diversify its footprint away from China and take advantage of Indian government incentives to make products in the South Asian nation.
Lava said in the note, the tie-up would employ over 100,000 staff and “put India on the global map for design, supply chain and manufacturing.”
The company added: “It would help bring the supply chain ecosystem and much-needed skills and technology to India.”
The potential join-up of the two companies comes at an interesting time as China and India face geopolitical tensions with each other. Chinese smartphone brands in India have recently seen offices raided and assets seized over missed tax and money laundering accusations.