Smartphone brand Honor Tech is considering an initial public offering (IPO) in the next four years to expand its manufacturing operations and retail presence in the country. The company is already making profits from trading its products in the market, but it is yet to achieve the same profits in its business areas, Honor Tech managing director Madhav Sheth told Economic Times.
“For me, an IPO is… not only about profit but also about revenue, because without profit you cannot enter the financial market,” Sheth told ET.
He also said the company has reached the break-even point from a contribution margin perspective. Honortech’s MD further stated, “We are on a par on the gross side, but there is still room for improvement on the net side.”
The latest Honor Tech devices are imported from the smartphone brand’s Chinese suppliers. Sheth said advanced technology in mobile phones cannot yet be manufactured in India.
He further explained that the company needs to import the product fully packaged. Madhav Sheth also said that the product is subsidized by the factory itself to ensure competitive prices.
Sheth also said that the company is in talks with production-linked incentive (PLI) eligible manufacturers to manufacture Honor mobile phones in India from next fiscal year without compromising on product quality.
Madhav Sheth said that the specific machinery needed to manufacture these phones comes from Japan and Honor is using them in China. He added that the company needs to introduce these machines in India over time.
In June last year, Madhav Sheth resigned as Vice President, Business and Corporate Strategy (Global) at Realme India. Madhav Sheth played a key role in the launch of his Honor brand smartphones in India.
“Parting may be disappointing, but the world is too small until we meet again. It’s goodbye for now, but our paths may cross again soon. It’s something we look forward to as we build a better and bigger future.” That’s it,” Sheth told X. Twitter) At that time.
In August 2023, Honor Tech was separated as an independent entity from PSAV Global, which had previously been licensed to sell Honor products in India.
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