Promoters of electronics manufacturing companies Dixon Technologies and Amber Enterprises are exploring investments in Lava International in their individual capacities, according to a report by Moneycontrol.
The proposed investment is expected to help the Indian smartphone maker expand production capabilities and develop a stronger domestic component ecosystem.
The funding round, which could be finalised in the coming weeks, may also include restructuring of a portion of Lava’s existing debt. The company has been in discussions with multiple investors to raise around ₹500-600 crore to finance expansion plans.
Despite government efforts to strengthen domestic electronics manufacturing, Lava has struggled to increase its presence in the competitive smartphone market. Its market share in smartphones priced below ₹30,000 remained below 2% in 2025.
The company’s efforts to raise institutional capital were affected after its proposed initial public offering (IPO) was stalled in 2021 following regulatory observations from the Securities and Exchange Board of India.
Investor confidence was further impacted after former managing director Hari Om Rai was arrested by the Enforcement Directorate in 2023 in a money laundering investigation linked to Vivo.
According to Lava’s latest annual report, the company had total liabilities of about ₹1,800 crore as of March 31, 2025.
Govt incentives boost Indian handset makers
The discussions around investment and debt restructuring have involved officials from the Ministry of Electronics and Information Technology (MeitY), sources said.
The potential investment comes after the government launched the Mobile Phone Manufacturing Scheme (MPMS), a five-year programme aimed at increasing domestic handset production and encouraging local sourcing of components.
The ₹62,500-crore scheme offers incentives ranging from 2.25% to 5% on eligible incremental sales, along with additional benefits for companies sourcing components domestically. Indian-owned brands with domestic design and research capabilities can receive further incentives.
Lava is expected to apply under the scheme and could benefit due to its Indian ownership, local brand identity and in-house product development capabilities.
The government is looking to support Indian companies capable of becoming global mobile manufacturing players, and Lava could emerge as one of the key beneficiaries of the new incentive programme.
