The Economic Times daily newspaper is available online now.

    Lava eyes tie-ups with global tech companies

    Synopsis

    The ongoing trade war between US and China appears to have started benefiting Lava, which has already started shipping India manufactured 4G smartphones to US, as per export data.

    Lava Mobile
    NEW DELHI: Home-bred handset maker Lava International is in talks with global technology companies to tie up for supply contracts as it strengthens its smartphone design, supply chain and manufacturing capabilities to address demand emerging from western markets amid the ongoing US-China trade tensions.

    "In this geopolitical and technological backdrop...we are in the process of forging deep alliances with the world's top technological powers and giants," a senior company executive told ET.

    "The alliance, if forged, will help in enhancing supply chain and manufacturing capabilities of Lava," the executive said, adding that Lava is already working on designing and manufacturing their products and is exporting out of its India facilities.

    The ongoing trade war between US and China appears to have started benefiting Lava, which has already started shipping India manufactured 4G smartphones to US, as per export data reviewed by ET.

    Lava won a large contract from US telecom major AT&T to provide 4G handsets worth 2,000 crore, while Micromax won a similar contract from telcos Sprint and T-Mobile to provide handsets worth 500 crore, ET recently reported.

    While Lava chairman Hari Om Rai did not comment on its discussions with western technology companies, he said the handset maker is doubling its R&D manpower strength by end of this financial year .

    "Our investments in smartphone design will grow substantially in the next financial year. We will have 300 employees for R&D in India... design cost in India is lowest in the world, and can help the industry," he said.

    While Lava has gained market share in feature phones substantially in the last 12 months, it has not been able to make a mark in smartphones due to stiff competition from Chinese companies like Xiaomi, Oppo and Vivo.

    "Indian firms were marginalised due to heavy capital burning and predatory pricing by online channel and Jio. However, it is a part of process," Rai said, adding that Chinese vendors grew as they worked on their design and manufacturing ecosystem in China, supported by policies of the Chinese government .

    According to market research firm CyberMedia Research, Lava though has emerged as the only Indian brand to be in fray in the Indian handset market dominated by the Chinese and South Korean brands.

    But Rai urged the Indian government to bring a policy framework to support home-bred players, especially in the field of electronics.


    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more
    The Economic Times

    Stories you might be interested in