Honor India return next month with strategic JV

Honor India return next month with strategic JV

The brand, earlier owned by Huawei, is being licensed by Gurugram-based PSAV Global, said a senior company executive. PSAV Global will raise 1,000 crore in domestic loans to establish its operations in the country.

Madhav Sheth, one of the two partners at PSAV Global, said the joint venture partnership will ensure that the decision-making rests with the Indian partners unlike other Chinese smartphone makers operating in India wherein strategic decisions aren’t in control of the operation heads in India.

“All Chinese manufacturers who are operating in India now, are 100% Chinese-owned equity firms. The decision making is also by the Chinese people. But this will be 100% Indian equity owned company and we will invest 1,000 crore by December in technology transfers, products and software developments and service setups in India,” said Sheth, also the former head of Realme, and the incumbent chief executive of HonorTech.

Honor’s return comes amid a broader crackdown on Chinese companies by New Delhi, including bans on many apps, and increasing scrutiny on investments from countries sharing land borders with India, especially China after a deadly Himalayan border clash between the two armies in June 2020 that left 20 Indian soldiers dead.

Sheth said while Chinese products offer quality and technology, Honor will give consumers a choice of not having any ‘bloatware’. He was referring to pre-installed apps commonly found on Android devices of Chinese brands that cannot be deleted by users.

Sheth claimed that the strategic joint venture will become a yardstick of corporate governance for all companies wanting to do business in India through the licensing or joint venture route.

“I’m disrupting the industry with this type of JV, getting into 100% licensing business. I’m opening up a route that will entice other brands to get into this. This will be the way businesses can happen In India.”

Sheth said the company has received the necessary approvals from the Indian government and is looking to launch a series of smartphones starting September. The products will be available on e-marketplace Amazon and across multibrand retail outlets. PSAV Global aims to turn profitable with 10,000 crore in revenue by December 2024. Sheth said PSAV Global is looking to source locally most of the 300 parts needed for mobile manufacturing, and building local partnerships for technology transfers via JVs for better technology and skillsets needed to enhance the local supply chains and value addition.

Honor smartphones will be made in India, Sheth said adding the company is working on setting up manufacturing units and is also in talks with local manufacturers for partnerships. Devices, including foldable smartphones, will be available in the range of 8,500-80,000, Sheth added.

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Updated: 21 Aug 2023, 11:27 PM IST

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