Промоутеры Dixon Technologies и Amber Enterprises обсуждают покупку доли в индийском производителе смартфонов Lava

Promoters of electronics manufacturers Dixon Technologies and Amber Enterprises are in talks to pick up stakes in homegrown mobile phone maker Lava International in their personal capacities, sources have told Moneycontrol. The proposed capital infusion will help the company expand smartphone manufacturing and build a component ecosystem, they added. The investment, expected to be finalised in the coming weeks, could also involve restructuring a part of Lava’s debt, they added. Lava has been in talks with several investors to raise around Rs 500-600 crore to fund its expansion, even as its market share and annual sales have remained muted despite the government’s push to deepen electronics manufacturing. As of 2025, Lava’s market share in the smartphone segment below Rs 30,000 was below 2 percent. The company has struggled to raise institutional capital after its IPO plans were halted in 2021 when the Securities and Exchange Board of India asked it to revise and refile offer documents. Investor sentiment was further dampened after its former managing director, Hari Om Rai, was arrested by the Enforcement Directorate in October 2023 in a money laundering probe linked to Vivo, the Chinese BBK Electronics-backed smartphone major. According to its latest annual report, Lava’s total liabilities stood at around Rs 1,800 crore as of March 31, 2025. Discussions around the proposed rescue and expansion package have involved senior ministry of electronics and information technology (MeitY) officials, sources said. The details of the proposed investment and the potential debt restructuring are not yet known. Emails sent to Lava, Dixon and Amber did not elicit a response at the time of publication of this article. MPMS opportunity The talks come at a time when the government has introduced an incentive programme to give Indian-owned handset brands a significant push. On August 21, the Centre notified the Rs 62,500-crore Mobile Phone Manufacturing Scheme (MPMS), a five-year programme to expand mobile phone production while increasing domestic sourcing of components and sub-assemblies. The scheme provides incentives ranging from 2.25 percent to 5 percent on eligible incremental sales, depending on the category, along with an additional incentive of up to 1.5 percent for domestic sourcing of components. It also has a dedicated track for Indian-owned mobile phone brands, including an additional 3 percent incentive for products involving domestic design and R&D. Lava, which is expected to apply for the scheme, could be among the few Indian handset makers positioned to qualify for the incentives, given its domestic ownership, Indian brand and in-house product development capabilities. “Lava may become a crucial beneficiary of the scheme. The Centre is keen to see an Indian company become one of the leading mobile manufacturers in the world and the scheme is designed to help them scale up,” a government source said. Building a component ecosystem The push comes as Lava is looking to expand beyond handset assembly and build a broader electronics manufacturing base. Lava, which started manufacturing in India in 2015, has an annual production capacity of nearly 40 million units. In May, the company said it plans to invest around Rs 1,100 crore over five years to manufacture display modules, camera modules, PCBs, multilayer PCBs and enclosures. “Over the next five years, we plan to invest around Rs 1,100 crore in the components business,” Lava executive director and chief manufacturing officer Sanjeev Agarwal said in May. The capital could provide Lava with funds to pursue this expansion while positioning it to benefit from the new incentives. Overseas push Lava has also renewed its overseas expansion. The company has entered the United Kingdom smartphone market, its first major overseas market under the renewed strategy. It previously sold devices in the Middle East, Africa and Latin America but scaled back operations in some of these markets to sharpen its India focus. The proposed investment would also create an interesting industry dynamic. Both Dixon and Amber operate in the electronics manufacturing services (EMS) business and compete with Lava. A stake in Lava would give the promoters exposure to a company that has its handset brand as well as capabilities in contract manufacturing. Lava has customised and supplied handsets to major global brands, including HMD/Nokia and Motorola. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated! Find the best of Al News in one place, specially curated for you every weekend. Stay on top of the latest tech trends and biggest startup news.