02 NOVEMBER 2014, CHENNAI – It was the pioneering company once was having more than 80 percent of market share on mobile handsets around the globe. Nokia suffers huge blow in the market after various companies started producing mobile handsets with android operating system and better features.
Nokia lately started using Android application but it was too late to gain the lost market again as the public are used to have touch screen, better performance and functionality than Nokia’s ordinary style devices with an old operating system installed.
According to the News released by Nokia’s New Owner company Microsoft in India, they have completely shut the production unit in India and it will not produce Nokia device in India anymore.
Nokia, once an iconic mobile handset maker, is shutting down its India plant on Saturday at Sriperumbudur, a company spokesperson said.
“As announced earlier on October 7, we are stopping handset production at our Chennai plant from tomorrow (Nov 1) in the absence of orders from our new parent firm (Microsoft), which terminated the mobile purchase agreement,” a Nokia India official told IANS.
Global software major Microsoft, which acquired the Finland-based Nokia’s global devices and services business, including assets in India for $7.2 billion April 25, decided to suspend manufacturing handsets from its Chennai plant though it could not take possession of it due to legal battles over a tax notice from the Tamil Nadu government and the Supreme Court in March.
“We can confirm that constructive discussions with union representatives and the laborer commissioner have resulted in an agreement on a financial package for Chennai factory personnel,” the spokesperson said in a statement a day after a tripartite meeting here between company officials, union members and the top laborer officer.
At the time of closing down the operations, about 1,100 employees were working in the plant, including 900 on the assembly lines.
Of the 6,600 employees the company had on rolls till March, 5,500 opted for VRS (voluntary retirement scheme) it offered and left. Nokia made a cumulative investment of $300 million (Rs.1,800 crore) in the Chennai factory over the last eight years.
Touted as Nokia’s largest production facility outside Europe, the Chennai plant started roll-out initially low-end mobile handsets from January 2006 after it was unveiled by then prime minister Manmohan Singh in the presence of his Finnish counterpart Matti Vanhanen.
“The asset freeze by the state tax department has prevented us from transferring the factory to any other mobile handset maker despite having a fully functional electronics manufacturing system,” the official said.
Source: Online News sources