'What one looks in a phone, we deliver'

How would you rate Nokia India's performance last year and what are your plans this year?
It was a good year and, as a market leader, the challenge is to grow the market. We held our position as a market leader and did well in all categories. We had a string of innovations in the last 12 months be it N-95, E50, 6100 and 1600. There are shifts happening as we go forward. From September onwards we have 6-7 mn net adds and it is around 80-90 mn every year. In future, bulk of the subscribers will come from rural and smaller markets. So the focus is on making the distribution right and cost effective for all consumer markets. In the last 11-16 months, there has been a drive on the replacement market. Innovation and good communication will be a big challenge for replacement as well as first time users.

What do you feel are the main reasons for your excellent performance in FY '06-07? And thereasons for maintaining or increasing your market share year after year?
Our consumer understanding is very good. What one looks in a phone, we deliver. We have focused on product range, competitive pricing, and good distribution lead, and continue to maintain lead vis-à-vis our competitors. Out of 90,000 retailers, around 30,000-35,000 are single brand shops that sells Nokia. In care, we have dramatic jump and around 92% complaints are handled within 24 hours. We have a huge benchmark as we have the best care network, excellent distribution network, and strong brand followed with product portfolio. And all the divisions have worked hand in hand to take it to the next level.

Last year, the main focus was on manufacturing and you have performed exceptionally well and manufactured 25 mn plus handsets. What's the manufacturing plan in 2007 w.r.t. manufacturing, indigenization and exports?
We have invested US $150 mn in the manufacturing plant. Component players are planning to invest US$350 mn. So the total investment is worth US $500 million. And this is the highest investment in terms of telecom manufacturing. We started India plant to cater to India but we are also exporting handsets to South East Asia. Indigenization and component manufacturing will depend on how quickly the component manufacturers want to do it. In terms of manpower, it has around 4,100 people.

In 2006, there has been a change in Nokia's distribution strategy. Would you demystify your distribution strategy?
HCL and Brightpoint are our national distributor. We have the largest network in the country and have a significant reach. Nokia also directly handles around one-fourth of the 90,000 retailers. On the service front, Brightpoint and HCL take care of the service network.

Any revamp on after sales service strategy of Nokia India?
We have handsets that are available in more than 80-85 million people. Servicing and catering to such a population has been a mammoth task for the last one year. Our turnaround time is 24 hours for 92% of the cases. We are also experimenting with N-Series phone in New Delhi where 80% of the time we return the phone in one hour by appointment and make it as consumer friendly as possible. This has worked very well and we plan to continue, as a phone is the lifeline of a person. The shorter the time for handset care, the higher the stickiness of the customer. So, the focus is on differentiated care for high-end phones.