Oppo Gets Permission To Open Retail Outlets; Will Invest Rs 2200 Cr In New Manufacturing Units
With this permission, Oppo is set to open their second manufacturing unit in India.
Fast-rising Chinese phone brand Oppo has two big news, both of which are positive, and showcases their determination to capture the lucrative Indian smartphone market.
While Govt. of India has approved their request to launch single brand retail outlets in India, they have announced massive investment of Rs 2200 crore in their second manufacturing unit in Greater Noida.
This means that the competition pertaining to smartphones, especially among Chinese brands, is all set to intensify in the coming days, as Oppo will fiercely battle it out with OnePlus, which has just beaten Apple and Samsung in India, along with other rising brands like Vivo and the biggest of them all: Xiaomi.
Can Oppo create some ripples now?
Govt. Approves Oppo’s Request For Outlets
The Foreign Investment Promotion Board has just approved Oppo’s request to open single brand retail outlets, which will enable them to make further inroads into the untapped Tier 2 and Tier 3 markets in India.
This way, Oppo has been allowed to directly sell to consumers in India, an advantage which Xiaomi has fully utilized to become the best selling brand. (although Xiaomi has partnered with Redington for distribution)
Note here, that Oppo will have to comply with the requirement of sourcing 30% of their production locally, for which Oppo is already prepared as they have one assembly unit in India, and will open their second unit very soon.
Along with Oppo, luxury goods retailer Louis Vuitton’ request to open retail outlet has also been approved by Govt. of India.
Oppo To Invest Rs 2200 Crore In Manufacturing Unit
Meanwhile, Oppo has announced their plans to invest Rs 2200 crore in India, which will be used to open their second unit in India.
This new unit would be based in Greater Noida, which is in the outskirts of National Capital, and would be used to manufacture Make in India phones, which will be both exported and sold locally. (now, within their own retail outlets)
Necessary papers have been submitted to the Environment Ministry and UP State Govt. for environmental clearance and land requirement.
The new unit would be spread across 110 acres, as per reports coming in.
This new unit would be a Surface Mount Technology (SMT) manufacturing facility, and they were compelled to launch this as their existing assembly unit has reached its full capacity.
Oppo’s first unit was opened in July last year.
As per IDC’s latest report, Oppo has captured 8% marketshare in India, within the smartphones niche.