HMD Global, the brand behind Nokia phones, is positioning India as a critical player in its global strategy, focusing heavily on expanding its manufacturing and export capabilities.
In the face of global economic challenges, India stands out as a vital market for HMD Global, with a significant portion of its production taking place within the country.
The ‘Make In India’ initiative has given a substantial boost to domestic manufacturing, enabling companies like HMD Global to leverage government incentives like the Production Linked Incentive schemes.
Sanmeet Singh Kochhar, the Vice President of India and MENA at HMD Global, emphasizes the company’s commitment to India, noting that “nearly all of its feature phones and smartphones are manufactured domestically.”
HMD Global is not just focused on local sales but has also started exporting from India, with the Nokia 105 feature phone being a prime example of its export ambitions.
The company has begun shipping India-made phones to the UAE and is exploring additional markets in Africa, the Asia Pacific, and the Middle East.
Key factors influencing their export strategy include “production costs and delivery logistics,” where government schemes play a crucial role in making India competitive on the global stage.
The quality of production in India is a major selling point for HMD Global, with significant investments made in staff training and facility development.
HMD Global’s market share in India’s feature phone segment has reached an impressive 31%, highlighting the continued demand for these devices among over 300 million 2G users.
Both feature phones and smartphones contribute substantially to HMD Global’s revenue, with the rural market being a significant driver, supported by a robust distribution network of over 700 partners.
Urban areas, including cities like Delhi, also play a vital role in the sales of feature phones, demonstrating their relevance beyond just rural markets.
The company is innovating in the smartphone sector as well, with the Nokia G22 being the first to focus on repairability, developed in collaboration with the global repair community, iFixit.
“This is something that we announced in this Mobile World Congress,” said Kochhar, noting that while the repairable smartphone is currently only available in Europe, HMD Global is monitoring its performance to gauge potential interest in other markets.
For its Indian consumers, HMD Global offers a replacement guarantee for devices with hardware defects, though the future of self-repairable phones in India remains uncertain.
The global chip shortage, exacerbated by the COVID-19 pandemic, has posed challenges, but HMD Global’s agile supply chain management has allowed it to navigate these difficulties effectively.
The company is planning to expand its product line in India, introducing new 2G devices, entry-level 4G smartphones, and affordable 5G phones in the near future.
Sustainability is becoming increasingly important in HMD Global’s product strategy, with the NokiaX30 5G featuring recyclable materials, although the company is committed to offering long-lasting devices at various price points.
Despite having strong ties with its parent company Nokia, and investors like Google and Qualcomm, HMD Global maintains a collaborative relationship without conflicts of interest.
HMD Global will continue to use the traditional Nokia logo, recognizing its heritage, even as the parent company shifts its brand identity to focus on its role as a network leader.
