India Inc India Inc: Wednesday, 06 December 2017 05:33

Lava to raise $30mn from Chinese firm

 

Noida-based phone handset company Lava is raising $30 million (about Rs 193 crore) from an affiliate of state-backed Chinese technology group Tsinghua Holdings, a first move by an Indian handset maker to raise capital in a tough market amid increasing competition from Chinese rivals.

The company has issued five lakh compulsory convertible preference shares to Hong Kong-based UNIC Memory Technology, an affiliate of Tsinghua Holdings, for the fund-raising.

The company plans to invest the funds in local handset design and manufacturing capabilities.

The company also plans to ramp up its existing manufacturing units and adding two units by investing Rs 2,615 crore ($402 million), to increase the overall production capacity to 216 million units per year, in the next eight years.

The fund-raising marks the second such instance of an Indian handset company partnering with a Chinese entity.

India Investment Journal’ has in-depth coverage on related topics.

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