IANS | 22 Aug, 2023
As the government pushes consumer electronics companies towards local
manufacturing, former realme India chief Madhav Sheth on Monday
announced a new venture called HonorTech, which is a 100 per cent Indian
joint venture (JV) collaboration, and will infuse Rs 1,000 crore by
year-end to begin with.
In an interaction with IANS, Sheth who has
been a veteran in the Indian smartphone industry, said that with his
new venture HonorTech that will bring the Honor brand ecosystem to
India, he aims to capture 4-5 per cent market share in the country by
end of next year.
The infusion of Rs 1,000 crore will be
channeled strategically into enhancing products, refining software
offerings and expanding service capabilities. The company aims to
achieve a projected revenue of Rs 10,000 crore by 2024.
“With 100
per cent licensing deal, HonorTech is vested with unparalleled level of
decision-making authority and decision-making rights. HonorTech is
aligned with the government’s vision to make India a manufacturing hub
and a driving force for innovation that has gained significant momentum
in recent years,” Sheth emphasised.
“We are looking to build
end-to-end supply chain in India. This will help generate an estimated
around 4,000 new jobs by the end of next year,” he told IANS.
Headquartered
in Gurgaon, HonorTech has joined hands with Noida-based PSAV Global to
expand the Honor smartphones’ network in the country.
The
partnership will pave the way for local partnerships as HonorTech is the
first Indian company led by Indian leadership in this industry, working
together in collaboration with PSAV, the existing Honor partner.
This
collaboration will allow HonorTech to select its product, partners,
manufacturing, services and distribution networks for the domestic
market.
“Through our collaboration, we offer India a global
product and a strong brand that has cutting edge technology, and a
self-reliant ecosystem”, said Sheth.
The entry of HonorTech
will give a much-needed fillip to the Indian smartphone industry which
is currently going through a slow phase.
The company will first launch a smartphone next month, and then move into offering other consumer electronics devices.
The
India smartphone market shipped 64 million units in the first half of
2023 with a 10 per cent year-over-year decline, according to an industry
report.
In the second quarter (April-June period), the market
grew by 10 per cent over the previous quarter but declined by 3 per
cent YoY with 34 million units, according to the International Data
Corporation (IDC).
"We at HonorTech are leveraging our
experience and expertise to catalyse transformative change, utilising
latent talent, technical knowledge, R&D, and global supply chain,”
said Sheth.
Drawing on Honor’s global leadership in R&D
and innovation, HonorTech will leverage over 7,800 research and
development personnel, six research and development hubs and over 100
cutting-edge laboratories.
