HMD Global, the Finnish firm best known for creating Nokia-branded feature phones, is transferring a large amount of its production operations from China as part of a drive to make India its primary manufacturing base.

The company is also in talks with electrical component suppliers throughout the world to persuade them to establish facilities in India, which will help it meet its export targets.
Impact of US-China Trade Tensions

HMD is preparing itself to benefit from the ongoing trade battle between the United States and China, especially if the new US administration led by President Donald Trump slaps heavier tariffs on China. The corporation intends to benefit on evolving geopolitical factors by relocating operations to India.

According to the report, Ravi Kunwar, HMD's CEO and Vice President for India and Asia Pacific, stated that the business is gradually relocating its supply chain, sourcing, and logistical infrastructure to India.

The majority of its operations, which were previously based in China, are now being relocated to India, which strengthens the company's export strategy, Kunwar said, adding that the proportion of products exported from China is declining while those sent from India is increasing.

Kunwar further stated that HMD has already relocated major production components, including essential supply chain personnel, from China to India. He noted that this transition is consistent with the company's overall objective of establishing India as a competitive alternative for export manufacturing.

Expanding exports into new markets

HMD now supplies Nokia feature phones and smartphones to West Asia and Africa via India. With the shifting geopolitical scenario and increased emphasis on supply chain security, the company intends to grow exports to the United States and Europe.

According to the report, Kunwar stated that the corporation is encouraging foreign parts suppliers to set up production facilities in India.

Component manufacturers see potential in India's domestic and export markets, and a significant shift will occur once government policies are clarified, he said, referring to the Ministry of Electronics and Information Technology's (MeitY) upcoming electronics component manufacturing scheme.

HMD depends significantly on Dixon Technologies, an electronics manufacturing services supplier, for the majority of its feature and smartphone production. The company has also collaborated with Zet Town India, a subsidiary of Zetwerk, to expand its production capacity for feature phones built in India.

HMD's Marketing Strategy

Earlier this year, HMD discontinued using the Nokia brand for its devices in favor of a new brand identity. The company is now focusing on the mid-range smartphone market with its new Fusion smartphone, which includes attachable accessories such as Smart Outfits for gaming and photography.

According to the study, Kunwar stated that the redesigned brand identity and new product offers are intended to grab both value and volume market shares in India.

We will continue to focus on the Rs 10,000-Rs 15,000 pricing bracket, and next year, we intend to target the sub-Rs 10,000 market, he added.

HMD's India Strategy for 2025

HMD's India strategy through 2025 is based on three pillars: secure devices, detox devices (non-smartphones and feature phones), and device finance.

Kunwar noted that security worries are developing not only among governments and the military, but also among consumers, and that the security segment is fast expanding.