HCL Info shares plunge on Nokia plans
HCL Infosystems plunged 30 per cent on after it said Nokia would start distributing handsets in India on its own.india Updated: Feb 20, 2006 17:26 IST
HCL Infosystems Ltd, India's top distributor for Nokia phones, plunged 30 per cent on Monday after it said the Finnish mobile phone maker would start distributing handsets in India on its own.
Shares in HCL Infosystems were down 30.25 per cent at Rs 180 in late trade in a stronger Mumbai market.
"Nokia and HCL Infosystems have decided to develop a go-to-market stratgey to jointly address the coverage needs of the urban and widely dispersed rural areas," HCL Infosystems said in a statement.
Earlier, HCL Infosystems was distributing Nokia phones on its own in the Indian mobile market, now the world's fastest growing.
New Delhi-based HCL Infosystems said on its Web site the Nokia distribution agreement had been renewed until 2011, but Nokia would add certain areas for direct billing by them in order to maintain a balanced channel mix for GSM handsets.
"It is difficult to accurately forecast revenue mix. However, the intention is that balanced mix would mean the volume would eventually be shared approximately equally," HCL Infosystems said, adding that the sharing of distribution would take place in a staggered manner over 1-½ years.
Officials from both companies were not immediately available for comment.