HMD Global is intensifying its efforts to use India as a manufacturing hub, planning to export smartphones and feature phones to Europe and the US. The company has already begun shipping to the Middle East and Africa.
Two years ago, HMD started exporting feature phones from its Indian contract manufacturing partners under the production-linked incentive (PLI) scheme and recently added the Nokia-branded G42 smartphone. So far, HMD has exported 2 million units from India and aims to double this to 4 million by the end of 2025. The company initially focused on the Middle East and Africa for its HMD-branded smartphones.
Jean-Francois Baril, founder of HMD Global, stated that exports to Europe will follow naturally, with the US being considered next. He emphasized the importance of consolidating manufacturing and highlighted the encouraging government policies that make India very competitive for handset manufacturing.
Currently, 70% of HMD’s production comprises feature phones, with the remaining 30% being smartphones, through a partnership with Dixon Technologies. HMD has also partnered with Zet Town India, a subsidiary of Zetwerk, to expand its capacity.
In a strategic move, HMD is now promoting its own brand, HMD, for smartphones to strengthen its market presence, which has struggled since 2016. The company restructured its agreement with Nokia last year, reducing the use of the Nokia brand for smartphones and reserving it exclusively for feature phones. This aims to better compete with Chinese brands in Indian and global markets, where the Nokia brand still holds strong recall in the feature phone segment.
HMD launched its first Crest smartphones under its brand on July 25 in India. Baril noted that the Nokia brand is not significant for smartphones but remains important for feature phones. HMD has been profitable since the third quarter of last year and is improving profitability each quarter, gaining recognition from banks, investors, strategic partners, and government officials. The company is now poised to grow in the smartphone market.
HMD is betting big on the Indian market to drive global smartphone sales. Its strategy in India will differ from global markets, with all devices launched being 5G-enabled, unlike other markets where 4G models are included. Baril emphasized their plan to be relevant in India with smartphones.
HMD is financially positioned to attract new investors to accelerate growth. The company aims to be a full-range smartphone player in India and plans to launch high-end Fusion smartphones soon. Ravi Kunwar, CEO and VP of India and Asia Pacific at HMD, mentioned the primary focus on the Rs 15,000-20,000 price segment, which is growing fastest in India due to 5G adoption. Chief Operating Officer Alain Lejeune added that while the company could target a lower smartphone segment, demand for 5G smartphones with advanced features drives up the final price due to increasing component costs.