HonorTech to Revive Honour Smartphone Brand in India with Rs 1,000 cr Investment

HonorTech is set to reintroduce the Honour brand of smartphones in India this September, as revealed by a senior company official. The initiative will commence with an initial investment of Rs 1,000 crore. Operating under a licensing agreement with the Chinese smart device company, Honour, HonorTech aims to secure a 4-5 percent market share in terms of volume by the end of the coming year, which would translate to a revenue of Rs 10,000 crore.

Madhav Sheth, CEO emphasized, "HonorTech is a wholly Indian operation. We will function under a licensing arrangement with Honour, where they grant us the license, and we will handle all aspects, from sales to manufacturing, here in India. No royalties will be paid to Honour."

Previously, the Honour brand was under Huawei's ownership until it was sold to Shenzhen Zhixin New Information Technology, another Chinese firm, in November 2020. HonorTech, on the other hand, is a joint venture between Madhav Sheth's PSAV Global and entrepreneur C P Khandelwal.

Sheth said, "Honor's manufacturing process is highly automated, with 70 percent of their production being completely automated, and they produce 40 percent of their machinery in-house. In India, we aim to meet these exacting standards." Under the licensing agreement, Honour will provide expertise in product development, supply chain management, technology transfer, and software transfer at a predetermined cost. Furthermore, Sheth indicated government interest in having Indian ownership and management of the company's operations.