Oppo’s Greater Noida factory to keep running, but prolonged anti-China protests will hurt

Oppo is keeping its Greater Noida factory running at 30% capacity, as permitted under lockdown rules, despite the protest outside the plant.

The Oppo factory in Greater Noida, (PTI)

Oppo's Greater Noida factory witnessed an anti-China protest outside the manufacturing plant on Saturday. However, the company has decided that they will keep the factory running with 30% capacity, according to a person close to the company. The 30% capacity limit is what is permitted under the home ministry rules under the current lockdown.

Oppo also makes handsets for sister brands Realme, OnePlus at its factory.

Analysts say that sales are going to be hit if the operations are forced to be halted due to these protests and the growing anti-Chinese sentiment across the country.

Hindu Raksha Dal staged a two-hour long demonstration outside the Greater Noida factory on Saturday. They locked the gates and raised ‘Boycott China' slogans. The protest was withdrawn after Additional Commissioner of Police, Gautam Budh Nagar, lodged an FIR under IPC section 188/268/170 against the protestors for violating Covid-19 lockdown rules.

Advocate and spokesperson for the Hindu Raksha Dal, Sanket Kataram, told a media house that the demonstration was the first of the many that they plan to hold if the India-China faceoff at the border leads to any more casualties from the Indian forces.

In a situation like this analysts like TechArc's Faisal Kawoosa pointed out that no brand can stop production since it is vital for them to resume work and deal with the production backlog and handle demand.

Kawoosa is of the opinion that the anti-China sentiment might affect sales in the short-run but over time we may not be able to do without Chinese brands. And in all this, South Korean brands like Samsung stand to gain the most.