Indian smartphone maker Lava International is planning a major Rs 1,100 crore investment to deepen its presence in India's electronics components ecosystem. The company is set to manufacture key smartphone parts like display modules, camera modules, printed circuit boards (PCBs), multiplayer PCBs and enclosures over the next five years. The move is expected to significantly increase localisation in Lava's supply chain while also generating around 8,500 jobs, according to company executives.
Lava's Rs 1,100 Crore Bet Aims to Localise Key Smartphone Components in India
Sanjeev Agarwal, Executive Director and Chief Manufacturing Officer, Lava, said the company's components diversification journey began about a year ago, with a focus on improving quality and reducing reliance on imported parts.
Our plan is to start production of display modules, camera modules, PCBs, multiplayer PCBs and enclosures. Over the next five years, we plan to invest around Rs 1,100 crore in the components business.
— Sanjeev Agarwal, Executive Director and Chief Manufacturing Officer, Lava
The company is also participating in the Centre's Electronics Component Manufacturing Scheme (ECMS) and Uttar Pradesh government-led component manufacturing initiatives, with approvals for multiple categories currently under process.
As the first step towards that broader Rs 1,100 crore localisation push, Lava has also inaugurated a new component and charger manufacturing unit at its Noida plant.
The facility, opened in the presence of Uttar Pradesh electronics and IT minister Sunil Kumar Sharma, is aimed at strengthening Lava's in-house manufacturing capabilities, improving quality control and boosting domestic value addition in its mobile business.
The new manufacturing unit is in line with Lava's vision to pivot innovation from India for the world. We have been pioneers of the Make-in-India initiative and with government's support we aim to bolster our manufacturing and RND capabilities by 2030.
— Sunil Raina, Managing Director, Lava International Limited
Lava said the Noida plant currently employs over 3,000 workers and has a production capacity of 20 million mobile devices. Meanwhile, the newly added component manufacturing expansion brings manual component production capacity of 9 million units.
The company says the facility also supports workforce development through in-house training programmes, apprenticeships and skill development initiatives. This will make it an early but important milestone in Lava's larger ambition to build a stronger local components ecosystem in India.
This comes at a time when the ongoing RAM crisis is causing smartphone prices to increase significantly. By further localising its smartphone manufacturing process, it may make the impact less painful by reducing costs elsewhere for Lava.
"The productivity and cost are at a world-class level. Compared to the chargers we were earlier using, the cost is around 20% lower while the quality is better," states Sanjeev Agarwal.
