NEW DELHI: Mobile phone makers such as Samsung, Oppo, Vivo and Lava have got the go-ahead from the Uttar Pradesh government and local authorities to restart their Noida and Greater Noida plants from this week, albeit at 20-30% capacity. Some are likely to face shortage of raw materials as their suppliers have still not got the nod to restart work, said industry executives.
“Permissions have been received by the majority of the companies, though the workforce has been truncated to 20-30%. It is extremely difficult to reach any kind of optimisation and efficiency in this manner,” Pankaj Mohindroo, chairman of India Cellular & Electronics Association (ICEA), told ET. “This stipulation will have to be relaxed. An uncompetitive industry can be run over by imports.”
Sanjeev Agarwal, chief manufacturing officer at Lava International, said the company has got an approval to restart production at 20% capacity, subject to certain conditions which will take two-three days to fulfil before it can restart production.
A Samsung executive, who did not wish to be identified, said the South Korean company’s Noida factory has reopened and production will resume this week.
Chinese mobile phone maker Oppo said it will operate its Greater Noida plant at 30% capacity, with about 3,000 employees of its total workforce of 10,000 working in rotation from Friday. “As the business gets back to usual in due course of time, the production will be enhanced to full capacity Currently, all Oppo products being sold in India are manufactured at the Greater Noida facility,” Oppo said in a statement.