Did you know that Google has plans to manufacture Pixel phones in India? This move has prompted discussions with three potential companies – Foxconn, Dixon, and Lava International.
Interestingly, not many people are aware of Lava’s journey in the smartphone market. They had their ups and downs – experiencing success at one point, facing tough times later, and eventually making a comeback.
However, the key factor that has contributed to Lava’s resilience is its focus on manufacturing and designing. Unlike other companies that simply rebranded phones from foreign manufacturers, Lava made a strategic decision to gradually shift towards smartphone manufacturing within India.
This approach has allowed them to stand out as the only smartphone brand that has been able to sustain its presence in the Indian market.
While other brands like Micromax made headlines with promises but later faded away, Lava remains committed to making a strong comeback in the Indian smartphone arena.
As you may be aware, HMD Global, known as Nokia, manufactures its phones in India. However, you might not know that they sought assistance from Lava and collaborated to produce phones at Lava’s factory.
This partnership extends to Lava’s collaboration with Motorola as well, where they manufacture Motorola phones in India. Lava, unlike other companies, has a unique focus on not just manufacturing but also designing and conducting research and development for mobile phones.
The advantage of this approach is that they can manufacture phones for other brands, reducing their risks. If one phone project faces challenges, they have revenue streams from other brands they support. It’s a clever strategy on Lava’s part.
The key factor enabling Lava to undertake such partnerships lies in the Production Linked Incentive (PLI) scheme. Through this scheme, Lava received substantial incentives, providing them with a competitive edge and the ability to establish a manufacturing facility.
Reports indicate that they are planning to invest approximately 800 crores in the coming years to expand their manufacturing capabilities.
Lava understands the importance of providing end-to-end solutions for mobile phone companies. They offer a complete package, including components, software, design, and testing, making it convenient for companies to come and have their phones manufactured by Lava.
Surprisingly, many people might not be aware that Lava holds the second position in the feature phone market, producing around 30 million to 45 million feature phones. Lava’s total production capacity for both feature phones and smartphones is an impressive 5 crore units per year.
This means that even if they don’t produce their own phones, they can cater to other brands and efficiently run their operations. However, Lava’s ambitions go beyond manufacturing for others; they aim to build a strong presence in the mobile phone market themselves.
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Lava Design in India Contest
Let me share with you an interesting aspect of Lava that many people are unaware of – the Design in India Contest.
Lava, the mobile phone company, once organized a contest specifically for Indian engineering students. The purpose of this contest was to encourage participants to submit their innovative smartphone design ideas through a dedicated app.
Lava would carefully select the most promising designs and offer the students the opportunity to create prototypes of their envisioned mobile phones.
The ultimate goal was to assess if these ideas could successfully thrive in the market. Essentially, Lava aimed to provide a platform for young engineering minds to showcase their creativity.
This initiative played a significant role in helping Lava understand how to create products that would resonate with the Indian market. The knowledge gained from this contest has been instrumental in shaping the company’s products, leading to meaningful improvements in their offerings. Surprisingly, not many are aware of this remarkable endeavor by Lava.
Moreover, Lava doesn’t just stop at creating its own smartphones; it also offers comprehensive support to aspiring entrepreneurs looking to venture into the smartphone industry.
Lava provides end-to-end assistance in product design, development, and testing, ultimately enabling these entrepreneurs to launch their phones successfully in the market. This approach has helped Lava stay resilient in a competitive market and indicates the potential for further growth in the future.
It is essential to understand that Lava’s success isn’t solely determined by the number of phones it sells. Even though it may not be selling an enormous volume of phones, it has managed to retain a strong presence in the market. Lava possesses valuable assets, one of which is the sub-brand called Xolo, which played a significant role around ten years ago.
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Success Story of Lava’s Xolo
Xolo, when it was under Lava’s wing, was renowned for its innovative approach. It was among the first to introduce phones with Intel processors in India, and their tablets featured AMD and Nvidia processors, setting them apart from the competition.
This focus on innovation was commendable, and in the current landscape of mobile phone industry where true innovation has become scarce, such initiatives are sorely needed.
When a company’s core operations and production are strong, it becomes much easier to handle other aspects of the business. Lava, for instance, has built a solid foundation by providing home service and demonstrating confidence in their product, Agni 2.
They offer a promise to replace any phone with issues for free, showcasing their commitment to customer satisfaction. Such confidence can only come from a company with a strong manufacturing base and expertise.
Lava’s innovative approach is evident in the introduction of the first made-to-order phone in India, allowing customers to customize their devices within a budget. They even offer the convenience of upgrading RAM and storage at their service centers. Furthermore, Lava prioritizes software updates for budget phones, which sets them apart from other companies.
Lava Future
Their success with MediaTek’s processors and potential future collaboration with Snapdragon further highlights their commitment to delivering quality products.
With plans to launch a phone in the $200 segment, Lava aims to control the entire process, from design to distribution. This approach could be advantageous for them, as demonstrated by the potential collaboration with Google Pixel, which could boost Pixel’s popularity in India.
While Lava currently assembles most components and imports some core parts, advancements in technology might lead to chip production in India.
This would reduce reliance on external sources. Currently, Lava primarily caters to the Indian market, but the possibility of foreign companies manufacturing phones in India for export opens exciting opportunities for Lava’s growth.
In conclusion, Lava’s strong core operations, customer-centric approach, and innovative strategies position them favorably against Chinese competition. As technology advances and collaborations flourish, Lava’s future in the Indian market looks promising.
Please feel free to share your thoughts on Lava in the comment section below. Thank you for watching the video, and I look forward to seeing you in the next one.