Nokia India Pvt Ltd - Consumer
Electronics - India
Nokia India Pvt Ltd
Strategic Direction
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Nokia’s success in India, one
of the fastest-growing and largest mobile phone markets in the world, has given
the parent company’s balance sheet a healthy look. Nokia has made the mobile
phone a fast-moving consumer good in India.
·
The company is looking to grow
its retail network aggressively and increase market penetration to keep up with
the growth of service providers. It aims to have a presence in 5,000 Indian by
the end of 2007.
·
The Korean brands LG, Samsung
and Motorola are all looking to increase their market shares, and Nokia will be
hard pressed to maintain its dominant position.
Key Facts
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Full name of company:
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Nokia India Pvt Ltd
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Address:
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Commercial Plaza, Radisson Complex, National Highway No 8,
New Delhi 110 037
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Tel:
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91-11-2677900
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Fax:
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91-11-26784100
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www:
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www.nokia.co.in
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Activities:
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Manufacture and sale of mobile phones and smartphones
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Sources: Euromonitor International from company
reports, trade press
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2003
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2004
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2005
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Net sales (Rsmillion)
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60,650
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82,140
|
107,160
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Number of employees
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184
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591
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1,609
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Sources: Trade press, company research
Company Background
·
Nokia India is a wholly owned
subsidiary of Nokia Group Finland, and it is present in the mobile phone sector
and also in portable computers, through their smartphones.
·
During most of the review
period, Nokia’s sales in India were met by imports from their other
manufacturing plants, and HCL Infinet was its main distributor.
Production
·
Nokia’s manufacturing plant in
India went on stream in the beginning of 2006, with trial production beginning
in January. Since its official inauguration in March 2006, the plant has
produced both low-end and mid-priced phones.
·
Exports to South East Asia
account for about 20% of current production, according to company estimates.
·
Located in Sriperumbudur, a
suburb of Chennai in the southern state of Tamil Nadu, the Indian plant is one
of fifteen operated by Nokia worldwide, and reportedly the only one that makes
both phones and network equipment.
Competitive Positioning
·
Nokia India is by far the
leader in the mobile phones sector. Industry estimates indicate that in GSM phones,
Nokia had an overwhelming 79% of retail volumes, in 2005, but in CDMA, its
share is a little below 18%. In the b2b networks business in India, it is also
one of the leading companies – along with Ericsson.
·
Nokia sells a wide range of
phones in India, catering to all price segments. While it uses its high-end
phones to create aspirations and develop an image of technology leadership, its
highest-selling models are the basic ones. In August 2004, a study by ORG-Gfk
found that the top-selling models in India were Nokia’s 1100, 3315 and 2300.
·
With an overall share of 56% in
mobile phones, Nokia is by far the leading NBO. Even within portable computers,
its smartphones have taken market share from other producers’ palmtops and
laptops to make it the leading brand.
·
The Nokia’s brand’s share has
grown by leaps and bounds between 2002 and 2005 and Indian consumers have
warmed to the brand as its reliability has been proven, and it is now seen as
offering good value for money. The Nokia 1100 was advertised as “Made for
India”, which increased its acceptance among consumers.
·
Nokia has promoted itself in
the GSM sector, rather than the sector within India. This has paid off, as CDMA
has struggled to gain acceptance in India after 2003, which has affected the competing
brand LG.
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Subsector
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Share (%)
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Rank
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Mobile phones
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56
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1
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Mobile computers
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59
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1
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Sources: Trade press, company research, trade
interviews, Euromonitor International estimates
