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Amber Enterprises has entered into a manufacturing collaboration agreement with Oppo Mobiles India

ICICIdirect Research 19 Jun 2026 DISCLAIMER

News: Amber Enterprises has entered into a manufacturing collaboration agreement with Oppo Mobiles India, marking its entry into the mobile handset manufacturing segment. Under the partnership, Amber Group will manufacture smartphones for OPPO, OnePlus and Realme, leveraging Oppo’s product expertise and Amber’s manufacturing capabilities, local value-addition initiatives and supply-chain strengths. The move diversifies Amber into a new consumer electronics category and could position the company to benefit from the growing localization of smartphone manufacturing in India.

View: OPPO, OnePlus and Realme collectively ship 3 crore+ smartphones annually in India, with production historically undertaken through Oppo India’s manufacturing ecosystem and select contract manufacturers. Amber Enterprises’ manufacturing collaboration with Oppo is aimed at diversifying the supply chain and expanding local manufacturing capacity. While smartphone EMS remains a low-margin business with EBITDA margins typically below 3%, the segment benefits from significantly higher asset turns (~8–10x), supporting better return ratios. We view the development positively for Amber as it opens up a large new growth avenue though execution and future plans details awaited, enhances its electronics manufacturing scale and creates potential synergies with its ongoing PCB and component localization initiatives. However, the increasing contribution of the smartphone business could exert some pressure on the company’s blended EBITDA margins over the medium term.

Impact: Positive

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