Tata Group reportedly looking to acquire a majority stake in Vivo India

• Indian conglomerate Tata Group is reportedly looking to acquire a majority stake in Vivo India.
• Vivo India is the Indian unit of Chinese smartphone maker Vivo.
• This comes amid a government push to involve a domestic company in operations.

Tata Group is reportedly looking to acquire a majority stake in smartphone maker Vivo India. The Chinese smartphone maker has been looking to partner with domestic companies amid a push from the Indian government to involve an Indian company in its manufacturing and distribution operations.

According to a report by Moneycontrol, Tata Group and Vivo are currently in an advanced stage of discussions.

“The discussions have reached an advanced stage where talks began around valuations. Vivo has been seeking a higher valuation than what Tatas are offering. The Tatas are interested in the deal, but nothing has been finalised yet,” a source familiar with the matter told Moneycontrol.

The Indian government reportedly wants an Indian company to have a stake of at least 51% in the joint venture with a Chinese smartphone maker, along with local leadership.

ED action against Vivo

Vivo has been under the Indian government’s scanner and was even raided by the Enforcement Directorate (ED) in July 2022.

The ED had claimed that Vivo had transferred ₹62,476 crore to its parent company in China over a five-year period to avoid paying taxes in the country. The agency had also accused the company of violating the Prevention of Money Laundering Act (PMLA).

Bhagwati Products take over Vivo’s factory

In yet another push to involve an Indian company in its operations, Vivo’s 14-acre manufacturing factory in Greater Noida has been taken over by Bhagwati Products (Micromax). The company has reportedly started hiring staff and will contract-manufacture smartphones for Vivo.

Bhagwati Products has formed a joint venture with original design manufacturer (ODM) Huaqin Technology and this JV is awaiting government approval.

Vivo will continue to manufacture from its new 170-acre factory in Greater Noida.

Tata Group’s push in smartphone manufacturing

This is not the first time the Tata Group is looking at manufacturing smartphones. Tata Group in 2023 acquired Wistron’s operations in India for $125 million, making it the first Indian company to manufacture Apple iPhones.

There have been reports that the company is also in talks with Pegatron, another iPhone maker to acquire a majority stake.

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