Lava is also in discussion with several western companies such as General Electric (GE) and At&T to provide them low-cost smartphones
Domestic smartphone maker Lava has now started having discussions with one of the top Indian telcos to manufacture co-branded smartphones. According to various industry reports, the manufacturing would be subsidised by the operator and eventually it would lower the cost of 4G devices.
Industry reports also stated that Lava has already started manufacturing Nokia branded smartphones and is now planning to sign an MoU with Motorola for similar purpose. Lava is also having discussions with all the top three operators for the manufacturing and design of smartphones.
An unnamed person familiar with the matter said, “Lava has reached an advanced level of talks with one of the telcos. Phones will be co-branded but will be subsidised by the teleco.” The American-Singapore manufacturer, Flex manufactures Reliance Jio phones. In association with Google, Jio aims to launch low cost 4G phones for the Indian consumers. Under the carrier subsidy model, Bharti Airtel is also having several rounds of discussions with handset vendors to unleash cheaper 4G phones.
Earlier, Motorola exclusively said to ET that it is having talks with Dixon technologies and Lava to provide a contract for $1 billion smartphone manufacturing in India. Lava Chairman Hari Om Rai said to the media that due to non-disclosure agreements they cannot reveal accurate details of the contract, but it has assured to strengthen its manufacturing operations.
After having lost to Chinese phone players, Lava expanded its business operations by escalating its production capacity to 45 million feature phones and 30 million smartphones. Moreover, the company is also in discussion with several western companies such as General Electric (GE) and At&T to provide them low-cost cutting-edge smartphones.
Lava is now the second-largest feature phone maker in India and is eyeing to grow its business from Rs 70 crore last year to Rs 300 crore this year. Of late, it has offered 1.73 lakh smartphones to the Punjab Government and is expecting more business growth from the Indian government.