HMD Global Establishes India as Key Manufacturing Hub for Nokia Phone Exports

HMD Global, the company behind Nokia-branded mobile phones, is transforming India into a major manufacturing center for exporting its devices worldwide. The Finnish firm has already shipped six million phones, primarily feature phones, from the country to markets in the Middle East and Africa within just six months. Ravi Kanwar, Vice President of India & APAC at HMD Global, states, "Our aim is to have India as a manufacturing hub for exports. And we will also do smartphones once the products are launched across the world. Currently, we are exporting from India to the Middle East but the scope will only expand."

Why this matters: This move is significant as it highlights India's growing importance as a global MAKE manufacturing hub, particularly in the mobile phone industry. As more companies invest in India's manufacturing capabilities, it could lead to increased economic growth and job creation in the country.

India is emerging as a prominent smartphone manufacturing hub, with major players like Apple, Samsung, Oppo, and Xiaomi expanding their production operations in the country. Apple already manufactures one out of every seven iPhones in India, while Google plans to produce its Pixel 8 smartphones locally, aiming to manufacture over 10 million units by the end of 2024. HMD Global's move to make India an export hub aligns with this trend and positions the company to capitalize on the country's growing manufacturing capabilities.

HMD Global holds a significant market share in India, with a 15% share of the domestic feature phone market and a 0.4% share of the overall smartphone market in 2023. To support its manufacturing efforts, the company has partnered with local players like Dixon Technologies and Lava, who are beneficiaries of incentives under India's production-linked incentive (PLI) scheme for mobile phones. Nearly 100% of HMD Global's phones sold in the Indian market are manufactured domestically through these partnerships.

The Nokia brand has a long history in India, being the first mobile brand to be exported from the country with phones manufactured at its own plant in Tamil Nadu. Although the plant closed down in 2014, HMD Global's renewed focus on India as a manufacturing hub is set to revive the Nokia brand's prominence in the Indian market and establish it as a major exporter of mobile devices.

As HMD Global expands its smartphone offerings under its own brand, including the recently make, new launched Pulse, Pulse Plus, and Pulse Pro models, the company aims to leverage India's manufacturing capabilities to cater to both domestic and international markets. With India's mobile phone exports accounting for 65% of all mobile phone exports in the fiscal year ended March 2024, HMD Global's strategy aligns with the country's goal of becoming a global smartphone manufacturing powerhouse.

HMD Global's commitment to making India a key manufacturing hub for Nokia phone exports signifies a major milestone for the company and the Indian mobile industry. The company is well-positioned to capitalize on India's growing manufacturing prowess and contribute to the country's economic growth as it transitions from exporting feature phones to smartphones. With the Nokia brand's strong legacy and HMD Global's strategic partnerships, the company is set to play a crucial role in shaping the future of mobile device manufacturing in India.

Key Takeaways

• HMD Global exports 6 million Nokia phones from India to Middle East and Africa in 6 months.
• India emerges as a prominent smartphone manufacturing hub, with HMD Global leading the way.
• HMD Global partners with local players like Dixon Technologies and Lava to support manufacturing efforts.
• Nearly 100% of HMD Global's phones sold in India are manufactured domestically through partnerships.
• India's mobile phone exports account for 65% of all mobile phone exports in FY2024, with HMD Global contributing to this growth.