HonorTech, a company to make a comeback, in India’s smartphone industry has announced a significant initial investment of Rs 1,000 crore. Through a licensing agreement with Honor, a leading smart devices company HonorTech aims to capture an important market share of 4 5% by the next year. This achievement would result in revenue of, around Rs 10,000 crore.
HonorTech, a prominent player in the tech industry, is set to make a grand return to the Indian smartphone market this September. According to a high-ranking official within the company, they’re embarking on this journey with a substantial initial investment of Rs 1,000 crore.
For this revitalization, HonorTech has entered into a strategic licensing arrangement with Honor, a renowned Chinese smart devices enterprise. Madhav Sheth, the CEO of HonorTech, shared his vision of capturing a notable 4-5 percent market share in terms of volume by the close of the upcoming year. This target, if achieved, would equate to an impressive revenue of Rs 10,000 crore for HonorTech.
Sheth emphatically expressed that the Indian government is keen on fostering the concept of Indian ownership and management in businesses. In this light, HonorTech stands as a distinctly Indian entity. Through their innovative licensing agreement with Honor, they will assume comprehensive responsibility, spanning sales to manufacturing, all within India. Importantly, no royalties will be directed to Honor in this collaborative venture.
Previously under the umbrella of Chinese telecom giant Huawei, the Honor brand found itself in the hands of Shenzhen Zhixin New Information Technology, another Chinese entity, in November 2020.
Sheth, who had been instrumental in guiding Realme’s international ventures, including their endeavors in India, has embarked on a fresh journey. Together with PSAV Global, owned by entrepreneur C P Khandelwal, he has established the joint venture known as HonorTech.
Sheth underlined that Honor boasts an impressive 70 percent automation rate in their manufacturing processes, with 40 percent of their machinery being self-engineered. The objective of HonorTech is to match these exceptional standards within the Indian context.
The agreement between the two entities involves a mutual exchange of expertise, encompassing product insights, supply chain orchestration, technology transfers, and software migration, all accounted for at an agreed-upon cost.
The roadmap entails HonorTech initially introducing select Honor products to gauge the Indian market’s response. Plans are in place to initiate local manufacturing by the year’s end. To fuel these ambitions, a debt funding of Rs 1,000 crore is being arranged, slated for investment in the coming year.
Sheth elaborated on their imminent plans, disclosing that Honor smartphones are poised for launch next month. Collaborative efforts are in progress with electronics manufacturing services that qualify for production-linked incentives (PLI). The aim is to roll out “Made in India” offerings by the close of the year—potentially November or December.
A clear revenue goal of Rs 10,000 crore by the culmination of the next year has been outlined, with Sheth reiterating the correlation between this target and the coveted 4-5 percent share of the market’s volume.
