Nokia has been one of the most reputed and trusted brands in the cellular communications industry in India, since the mid-1990s. Established in 1994, Nokia Corp. entered the Indian market to leverage the opportunities provided by new emerging markets with the establishment of it wholly owned subsidiary Nokia India. Even though Nokia globally operates in two businesses - mobile phones and telecommunications networks, for the Indian venture, Nokia focused only on the mobile phone market a trait which attributed to its success in the emerging markets.
The company initially decided to set up a handset manufacturing plant in the country. However, the plan was put on the back burner since the volume of sales at that time was too low to justify the establishment of a new unit in India. Instead the company, decided to import handsets from its international manufacturing plants. Nokia formally began its operations in India by supplying GSM equipment/handsets to two cellular players, SkyCell Communications in Chennai and Usher Martin Telecom operating in Kolkata. Towards the end of the decade, the company setup several joint ventures with cellular service providers in different states for the supply of handsets and mobile communications infrastructure. Within the first five years, the Indian operations yielded revenues of in excess of USD 100 million, making India a crucial market for its handset business. India was also considered as a central hub for creating benchmark products for the emerging markets due to its increasing revenue contribution to the Group.
To strengthen its position in the Indian mobile handset market, Nokia followed its global strategy of developing products at a local level, customised according to the consumers needs and at the same time maintaining international standards. With this strategy in mind, the company worked towards developing innovative and user-friendly products at affordable prices for the Indian masses by establishing software development centres in India across various locations. In 2001, the company invested in setting up its own software development facilities in Hyderabad and Bengaluru. The Indian R&D hubs and research centres play a crucial role in the development of new applications, software platforms and hardware for high-end Nokia mobile devices. These centres introduced localized innovations in handsets such as one-touch flashlights and localised languages modes, which appealed more to the rural population in India which were a hit in other emerging economies.
To accelerate its software development Nokia has also entered into research relationships with IT institutes including the Indian Institute of Science (IISC) in Bangalore and Indian Institute of Technology (IIT), Delhi. In 2005, Nokia set up its tenth handset production facility outside Finland at Sriperumbudur in Chennai. Originally designed to cater to the Indian market, the plant has now begun to export a significant part of its production to neighbouring countries.
Today, the India division has become the second largest market for the company globally and commands a 70 percent market share in cellular phones. According to the company’s 2007-08 annual report, India holds the third position, one level behind China (12 percent) with net sales of USD 4,872 million (7 percent of the Group’s revenue from major markets). During its 16 years of operations in India, Nokia has firmly established itself as the most trusted brand in the mobile handsets market.
The company initially decided to set up a handset manufacturing plant in the country. However, the plan was put on the back burner since the volume of sales at that time was too low to justify the establishment of a new unit in India. Instead the company, decided to import handsets from its international manufacturing plants. Nokia formally began its operations in India by supplying GSM equipment/handsets to two cellular players, SkyCell Communications in Chennai and Usher Martin Telecom operating in Kolkata. Towards the end of the decade, the company setup several joint ventures with cellular service providers in different states for the supply of handsets and mobile communications infrastructure. Within the first five years, the Indian operations yielded revenues of in excess of USD 100 million, making India a crucial market for its handset business. India was also considered as a central hub for creating benchmark products for the emerging markets due to its increasing revenue contribution to the Group.
To strengthen its position in the Indian mobile handset market, Nokia followed its global strategy of developing products at a local level, customised according to the consumers needs and at the same time maintaining international standards. With this strategy in mind, the company worked towards developing innovative and user-friendly products at affordable prices for the Indian masses by establishing software development centres in India across various locations. In 2001, the company invested in setting up its own software development facilities in Hyderabad and Bengaluru. The Indian R&D hubs and research centres play a crucial role in the development of new applications, software platforms and hardware for high-end Nokia mobile devices. These centres introduced localized innovations in handsets such as one-touch flashlights and localised languages modes, which appealed more to the rural population in India which were a hit in other emerging economies.
To accelerate its software development Nokia has also entered into research relationships with IT institutes including the Indian Institute of Science (IISC) in Bangalore and Indian Institute of Technology (IIT), Delhi. In 2005, Nokia set up its tenth handset production facility outside Finland at Sriperumbudur in Chennai. Originally designed to cater to the Indian market, the plant has now begun to export a significant part of its production to neighbouring countries.
Today, the India division has become the second largest market for the company globally and commands a 70 percent market share in cellular phones. According to the company’s 2007-08 annual report, India holds the third position, one level behind China (12 percent) with net sales of USD 4,872 million (7 percent of the Group’s revenue from major markets). During its 16 years of operations in India, Nokia has firmly established itself as the most trusted brand in the mobile handsets market.
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