New Delhi (Agency): HonorTech, a newly formed Indian entity, has announced plans to relaunch the Honor brand of smartphones in India. With an initial investment of Rs 1,000 crore, the company will collaborate with the Chinese smart devices firm Honor, targeting a substantial market share and emphasizing local manufacturing.
The relaunching of the Honor brand is expected to take place in September, with the investment focused on sales, manufacturing, and other business aspects within India. HonorTech aims to secure a 4-5% market share in terms of volume by the end of next year, which will translate to a revenue of Rs 10,000 crore for the company.
In a conversation with PTI, HonorTech’s CEO Madhav Sheth shared the company’s vision and explained the significance of the relaunch. He stressed that HonorTech is a “completely Indian entity” and emphasized that the partnership with Honor will focus on India-centric operations. “No royalty will go to Honor,” Sheth stated.
The Honor brand, previously owned by Chinese telecom giant Huawei, was sold to Shenzhen Zhixin New Information Technology in November 2020. The revival of this brand within India will take place under a licensing deal between HonorTech and the Chinese company.
Madhav Sheth, formerly of Realme, has formed a joint venture with PSAV Global, owned by entrepreneur C P Khandelwal, to bring the Honor brand back to the Indian market. Sheth acknowledged the advanced manufacturing capabilities of Honor, noting that “Honor’s 70% manufacturing is completely automatic and 40% of their machinery is completely made by them.” Matching similar standards in India will be part of the deal, with Honor assisting in product knowledge, supply chain management, technology transfers, and more.
The initial phase of the relaunch will involve bringing some of the Honor products to test the Indian market. Plans are underway to start local manufacturing by the end of the year. “We will launch Honor smartphones from next month onwards. We are in talks with electronics manufacturing services who are eligible for PLI (production-linked incentive) for manufacturing. We are targeting to start shipping ‘Made in India’ products from November or December,” Sheth shared.
Additionally, the company has announced plans to raise Rs 1,000 crore in debt funding that will be invested by next year. The ambitious project to revive the Honor brand not only aligns with the government’s vision for Indian ownership and management but also promises to bring substantial revenue and market presence in the coming years.
By focusing on local manufacturing and collaborating with a known brand, HonorTech is positioning itself as a serious contender in the competitive Indian smartphone market. Its commitment to aligning with Indian standards and regulations further solidifies its intent to make a lasting impact. The relaunch of the Honor brand under the guidance of HonorTech holds promise for consumers and showcases a significant stride in strengthening Indian manufacturing capabilities in the tech industry.