The joint venture could be a first for an Indian company since the government announced restrictions on Chinese businesses in 2020 following the border skirmish between the two Asian neighbours.
Senior executives from Huaqin are due to travel to India to finalize the final outlines of the deal, which will give Lava a stronghold in the country’s booming electronics manufacturing sector, officials said.
Lava is a beneficiary of the Production Linked Incentive (PLI) programs for smartphones and computer hardware. If the Lava-Huaqin joint venture becomes a reality, it will be a boost for the country’s electronics industry.
According to officials, the joint venture will aim to serve major US and Chinese customers for R&D, product design, supply chain and manufacturing of their multiple product categories. “This partnership has the potential to create a Fortune 500 company that will employ over one hundred thousand people and put India on the global design, supply chain and manufacturing map,” an official said.
The people further said that Lava has started working for setting up the manufacturing unit and the senior management of the two companies will travel to Uttar Pradesh, Haryana, Tamil Nadu, Andhra Pradesh and Karnataka to finalize the site. “The deal is in its final stages and could be announced soon,” an official said on condition of anonymity.
Queries sent to Huaqin went unanswered at press time while Lava had no comment.
However, after finalizing the deal, the company must obtain government approval before starting to set up a manufacturing unit.