VIVO's INR 4,000-crore Investment in India and OPPO's MD Resigns
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Chinese companies in India made an advent many years ago. Today, this advent today has transformed into several successful ventures that have changed the form and shape of Chinese business ecosystem in the Indian market. The most successful of this include Xiaomi, VIVO, Oppo etc. It is interesting to see how China is determined to have a positive business relationship with India despite the conflicting bilateral relations.
Recently, reports were rife that LiuGong India, a wholly owned subsidiary of China-based Guangxi LiuGong, a heavy equipment maker is planning to invest 2.5 billion in India with the motive of making it a sourcing hub.
Although China’s economy is much larger than that of India’s, as two most powerful emerging nations in Asia and in the world, China and India know all too well that they can benefit from each others’ strengths when it comes to business. The politics, of course, can be left to the politicians and other leaders, the businessmen have their way, in this case, of course.
VIVO and OPPO - Two Sides of the Same Coin
The recent Chinese-advent-into-India concerns, well, again, the handset market which is consuming India into a whirlpool. Both these companies which are subsidiaries of BBK Electronics were in news for different reasons-first reason is to rejoice and the other compels us to rethink.
Rejoice and Rethink
VIVO is planning to invest INR 4,000 crore in India in the second phase of the Make in India plan which also includes setting up a new plant as confirmed by Nipun Marya, VIVO India Director. Other companies that are making their manufacturing presences felt include of Xiaomi and Samsung. Marya told Economic Times that Vivo India has received 169 acres close to its existing plant in the Greater Noida area of Uttar Pradesh, where it will set up the second facility. He also said that Vivo will invest Rs 800 crore initially, apart from the land cost, and the new plant will become operational over the next 12-18 months, creating over 5,000 jobs in the first phase.
Another piece of news that rocked the Indian and Chinese business world pertains to Oppo. Managing Director of Oppo India, Yi Wang resigned from his position amidst mounting pressure of enormous losses to the handset maker.
An Oppo spokesperson confirmed by announcing, “During a meeting between the Board of Directors of OPPO Mobiles India Pvt Ltd on November 28, 2018, it has been mutually decided that Yi Wang, Managing Director of the company will step down from his position, effective November 30.” He also highlighted, “Wang has been an important part of OPPO's journey in India and has played a crucial role in the company's success in the country since it entered the Indian market. We thank him for his valued contribution and wish him the very best for his future endeavours.”
There is so much happening in the Indian handset market which is exceedingly lucrative. Such developments further open doors of progress, a move subtly smiled by the Indian businesses as well as the Chinese ones