Amber Group to Manufacture Oppo Phones in Major Expansion
Amber Group is accelerating its electronics manufacturing footprint through a strategic partnership with Oppo Mobiles India, aiming to scale smartphone production significantly over the next few years.
Key Highlights
- Production is projected to hit 8 million units by fiscal year 2028, capturing nearly 20% of Oppo’s domestic volume.
- Manufacturing volumes are planned to scale up further to 15 million units by fiscal year 2029.
- The collaboration circumvents Press Note 3 restrictions by sub-leasing Oppoβs current local facility.
- Local value addition is targeted to rise from 10%–12% up to 35%–40% within six years.
Chennai: Amber Group plans a rapid ramp-up of commercial production of Oppo branded smartphones with 8 million units by the 2028 financial year, which is roughly about 20% of Oppoβs India volume. It plans to ramp it up to 15 million in FY29, with trial orders beginning by the end of the current fiscal.
Amber Group joined Indian electronics manufacturing companies venturing into the mobile segment through a partnership with Chinese brands. It entered a collaboration agreement with Oppo Mobiles India on Thursday to make smartphones for Oppo, Realme and premium brand OnePlus. The company plans to sub-lease Oppoβs existing facility in the country, thereby escaping press note 3 approval, which put tighter restrictions on Chinese FDI, thatβs holding the Dixon-Vivo joint venture.
Speaking on an analyst call on Saturday, Jasbir Singh, executive chairman and CEO of Amber Enterprises India, said they expect to start with assembly and surface mount technology and increase the domestic value addition to 35%–40% in six years, tapping its existing strengths in electronics components, compared to the current 10%–12% local value addition. βWe have a clear roadmap for gradually increasing value addition beyond PCBs, which would increase the margins and total addressable market size,β he said. When asked about revised mobile PLI benefitting value addition, he said that though details remain speculative at the moment, Amber is already executing its value-addition roadmap and Oppo India will actively help bring more global component suppliers to the country.
While the mobile assembly is a low-margin business, Amber said itβs part of balancing existing value-added, high-margin business with high volume, asset-light business and reducing the seasonal concentration inherent in its core room air conditioner (RAC) business. It estimates about Rs 50 crore capex, focusing on setting up basic assembly and SMT.
Future Outlook
The partnership positions Amber Group to diversify its revenue streams and mitigate the seasonal volatility of its air conditioning business. By utilizing existing infrastructure to bypass regulatory delays, the company is set to deepen India’s electronics component ecosystem. Collaborations with international suppliers are expected to steadily elevate domestic manufacturing capabilities through 2029.
FAQs
What are the production targets for the Amber-Oppo partnership?
The venture aims to produce 8 million smartphone units by fiscal year 2028, before scaling up to 15 million units in fiscal year 2029. Trial orders are expected to commence by the end of the current fiscal year.
How does Amber Group plan to increase domestic value addition?
Amber Group intends to lift local value addition from the current 10%–12% to between 35%–40% over a six-year period. This strategy will leverage the company’s existing expertise in electronic components and advance beyond printed circuit boards.
What brands will be manufactured under this agreement?
The collaboration agreement between Amber Group and Oppo Mobiles India covers the production of smartphones for the Oppo, Realme, and OnePlus brands.
