Tata Group Nears Deal To Secure Majority Stake In Vivo India: Report

The Tata Group is reportedly on the brink of acquiring a majority stake in the Indian division of Chinese smartphone manufacturer, Vivo. Concurrently, Bhagwati Products has assumed control of Vivo’s manufacturing facility in Greater Noida.

What Happened: Tata Group is enthusiastic about the deal, but a final decision is still pending, Moneycontrol reported. The discussions have progressed to an advanced stage, with the primary focus being on valuations. Vivo is seeking a higher valuation than what Tata Group is prepared to offer.

The Indian government is encouraging domestic companies to participate in the operations of foreign firms, including manufacturing and distribution. This initiative aims to ensure that domestic companies have a significant influence over the country’s mobile phone industry, which is predominantly controlled by Chinese brands.

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Bhagwati Products, in partnership with Huaqin, has taken over Vivo’s Greater Noida factory and will soon begin manufacturing smartphones for Vivo. This joint venture is currently awaiting the green light from the Indian government.

Vivo, which is under investigation for alleged tax evasion and violations of the Prevention of Money Laundering Act (PMLA), has relocated its manufacturing operations to a new factory in Greater Noida. The factory is expected to be fully operational in the near future.

The Tata Group’s interest in Vivo is part of its wider strategy to penetrate India's electronics manufacturing sector through its subsidiary Tata Electronics. The group had earlier acquired the local operations of Taiwanese Wistron and is now in discussions with Apple contract manufacturer, Pegatron, to secure a majority stake in its iPhone manufacturing unit near Chennai.

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Posted In: M&ANewsTechTata GroupVivo