In order to progress ambitions for establishing a manufacturing venture in India, Indian smartphone producer Lava International had discussions with Chinese company Huaqin Technology, according to Bloomberg. The company explained in a note to India's technology ministry, which the news agency obtained, that it will bid for contracts with the US and Chinese clients for R&D, design, and production of electrical equipment. Although the agreement is not yet finalised, it is near, the memo states.
Lava Would Serve As Huaquin’s Entry Point Into India
As per Bloomberg, Huaquin had over 33,000 employees and over US$13 billion in revenues in 2017. The business created and produces a range of tech products, including smartphones, for companies like Vivo, Xiaomi, Samsung, and Lenovo. Huaquin's entryway into India, a developing manufacturing hub with less expensive labour, would be through Lava.
A partnership between the two businesses would give it the size to compete with Apple's manufacturing partner Foxconn Technology, which has increased manufacturing in India to diversify its footprint away from China and take benefit of government rewards to produce goods in the South Asian country.
The collaboration, according to Lava's statement, would create over 100,000 new jobs and elevate India's manufacturing, supply chain, and design industries to a global level. The firm added that it would assist in bringing India's supply chain ecosystem, as well as critical talents and technology.
As China and India experience geopolitical issues with one another, the potential merger of the two businesses occurs at an interesting time. Due to allegations of unpaid taxes and money laundering, offices of Chinese smartphone firms in India have lately been searched.
