Lava to shift production for export market from China to India within 6 months

New Delhi, 16th May 2020: Lava, a leading Indian mobile phone company is all set to shift its production for the export market from China to India within next six months. The company is also relocating its R&D facility and design center from China to India. As a part of the transition, Lava will invest around 80 Cr this year and subsequently around 800 Cr over the next 5 years.

The move came after the Indian mobile phone manufacturers gained a significant cost advantage over China from the PLI scheme announced by the government last month. Lava currently follows a two-pronged strategy for its exports- One by selling phones under its brand name and another by manufacturing or customizing products for electronic companies.

Hari Om Rai, Chairman and Managing Director of Lava said, “We have been eagerly looking forward to an opportunity to shift our entire mobile R&D, design and manufacturing from China to India. With the production linked incentives, our manufacturing disabilities for the world market would largely be met hence we plan to make this shift.”

Lava exports over 33% of its phones to markets such as Mexico, Africa, Southeast Asia and West Asia.

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