NOKIA: "We are not ready with our detailed manufacturing plans"

When I had met Mr Jorma Ollila (chairman and CEO of Nokia Corp) a few

months back, he had said there were no concrete plans for manufacturing in

India. What happened in the last few months that you decided to announce

manufacturing plans for India?



Yes he was also here a few months back. After he came back, there has been

quite a lot of thinking going on, and we realized that India has a lot of

potential, and we need to manufacture here.

But what changed in the last few months — was it that the cash and carry

policy was not extended, and you had no option but to announce that you will

manufacture locally?



I would not call it that way. We have been doing lots of investments in the

country in building our presence, our reach, and our brand. We are also doing a

lot of our R&D work here. You must realize that before we announce

manufacturing, there have to be lots of things in place. We must have our

sourcing partners and plans in place. The logistics plan has to be there. So a

lot goes into the planning for it. It has to be a competitive product at the

end.

You have announced manufacturing plans. Tell me if all your plans in terms

of location, component sourcing, distribution models etc are in place?

No I don't think that we are ready with our detailed plans.

But you do have a very well oiled distribution system in place.

Yes it is, but you know that is also one area that we need to work

continuously on. Like in many other emerging markets, the user base is now

shifting from the metros to smaller towns and rural areas. The distribution game

is very different in those areas.

Does that mean that you would be looking at having more distributors —

currently you have HCL, whose strength is not rural areas and places beyond B

& C category towns?



Yes, we have to see that we reach to the small places. That can be done by
several ways including strengthening our partners, and even getting into

distribution ourselves. But we want to ensure reach into the growing areas. It

will be a mix of both.

Ibrahim Ahmad