Lava, Xolo Smartphones may be made in Goa

Goa may soon join Maharashtra, Telangana, Noida and Bengaluru to play host to a major smartphone manufacturer, with Lava International Limited formally approaching the state department of information and technology with a proposal to set up a smart phone-manufacturing facility. If approved, the venture could generate approximately 15,000 jobs locally. In turn, the international smartphone maker is asking for “a suitably lucrative offer” – over and above the incentives provided by the investment promotion board – to “sweeten the deal”.

Rising labour costs, currency fluctuations and doubts over China’s economic growth have prompted Lava International to look at India as an alternative for its manufacturing base.

The fourth-biggest smart phone manufacturer in the country makes the Lava and Xolo smartphones.

The Noida-based company put in its formal proposal on August 12, seeking land at the electronic system and design manufacturing (EDSM) hub that will come up at the Tuem electronic city.

Its representatives had met chief minister Laxmikant Parsekar in June this year to explore the possibility of making Goa its production hub.

“Lava has approached us to shift its entire manufacturing assembly unit to the ESDM hub, but it has asked for tax exemptions and subsidies. Hence, the proposal has been sent to the investment promotion board,” Shilpa Shinde, director of information and technology, said.

“While we are in talks with various state governments for the purpose of setting up our next manufacturing plant, we have not decided on the final location yet,” a company representative said.

A government official disclosed that the smartphone maker had been asking the state to consider provision of extensive tax exemptions and higher subsidies since it would be creating a large number of employment opportunities.

“It is the government’s call, but the IPB will first discuss the matter. It may finally be taken up by the cabinet, if required,” a source in the know of the developments, said.

If the government agrees to Lava International’s proposal, and if the smartphone manufacturer ultimately narrows down on Goa to set up its manufacturing hub, it will be the first international smartphone company to invest in the state.

Tuem Electronic City is expected to be set up on 5 lakh sqm of land in Tuem.