Lava shuts down manufacturing facility in Noida under government orders: Report

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Lava has announced that it will shut its manufacturing facility in Noida. The home-grown smartphone maker is shutting down operations from March 22 to March 25 at its facility in Noida. The manufacturing plant in Noida is capable of producing 3 million devices per month. Around two million of these devices are exported every year. According to Counterpoint Research, Lava is the fifth largest feature phone maker globally.

According to The Economic Times, the company has an overall handset install base of 5.3 percent. It has an install base of around 8.5 percent in the feature phone segment. The share of the company in the smartphone market stands at 3.1 percent thanks to Xolo. “We have shut the factory between 22 March-25 March as per UP government’s directive,” Lava spokesperson told ET.

Lava is not the first smartphone maker to shut down operations in the country. Samsung, Oppo and Vivo have also halted productions in the country. It seems that smartphone makers making devices in the Delhi-NCR region are shutting down their facility. It is not immediately clear whether Xiaomi and Foxconn with operations in South India have also shut operations.

The smartphone makers are taking this action after state governments announced lockdown across the nation. In most states, the formal lockdown is expected to continue until March 31, 2020. With more Coronavirus cases being reported every day, the government is taking cautionary measures to restrict people to stay home. With productions halted, these smartphone makers are not sharing how much of their revenue will be impacted.

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So far, thirty states and union territories have announced a complete lockdown across 548 districts. In 58 districts across three states, the lockdown is partial. The total number of positive cases now stands at 468 while 34 have recovered. There have been nine deaths so far due to the Coronavirus outbreak. The country is trying to flatten the curve by imposing strict lockdown measures.



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