Lava International Limited, a key player in India's smartphone industry, is taking significant steps to boost its manufacturing strength. In an exclusive interview with CNBC-TV18, Sanjeev Agarwal, Chief Manufacturing Officer, shared the company’s plans to scale up local production and reduce reliance on imports. This effort is further supported by the Indian government’s production-linked incentive (PLI) scheme, which Lava plans to leverage to localize its manufacturing processes.

Focus on In-House Manufacturing for Quality Control

Agarwal emphasized Lava's dedication to offering top-quality products and exceptional customer service. He explained that controlling the entire manufacturing process—from design to supply chain and production—enables the company to deliver this value. By owning each step, Lava ensures that its products meet the highest standards. 

PLI Scheme and Localisation Efforts

The government's PLI scheme has further motivated Lava to deepen its commitment to local manufacturing. Lava has been working on localizing key components, including printed circuit board assembly (PCBA), and has been identifying parts that can be manufactured in-house. Agarwal noted that the company’s phased approach toward localization aims to strengthen the Indian electronics ecosystem while boosting internal capabilities.

Process Innovation and Ecosystem Development

Lava is continuously innovating its production processes to reduce inefficiencies, boost productivity, and embrace cost-effective automation. The company is also building partnerships within the local ecosystem to further enhance its localization strategy. As part of this effort, Lava is streamlining procurement processes to reduce lead times and optimize working capital, thus increasing overall operational efficiency.

Tackling Industry Challenges

The electronics manufacturing sector in India faces challenges, including the fast pace of technological advancement, the high cost of capital investment, and a shortage of skilled labor. According to Agarwal, Lava is addressing these hurdles by fully utilizing the PLI scheme and focusing on high-priority components that offer the most value. Lava is also committed to improving its local value addition and intellectual property by developing its own designs, helping the company stay competitive.

Growth Plans and Future Outlook

Agarwal expressed optimism about Lava’s future in electronics manufacturing. Over the next few years, the company aims to increase production by ₹500 crore annually, either through expanding its market share or by offering manufacturing support to other brands. Lava is positioning itself as a leader in quality, cost efficiency, and delivery. The focus on localizing critical components, Agarwal stated, will be central to Lava’s sustainable growth and the development of India’s electronics manufacturing ecosystem.

Opportunities in the Indian Electronics Space

Lava primarily serves the domestic market, but the company has plans to strengthen its global presence. By increasing local manufacturing and improving the value chain, Lava hopes to enhance its competitiveness in the international arena. Agarwal believes that the Indian electronics sector is ripe with opportunities for growth, particularly as the country pushes for greater self-reliance in manufacturing.

Commitment to Make in India

Lava is fully dedicated to supporting the "Make in India" initiative by working closely with the government and industry stakeholders to shape policies that promote local manufacturing. Agarwal reaffirmed Lava’s commitment to advancing India’s electronics sector and achieving excellence in all aspects of its production.