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Arrest of Lava International founder shakes mobile manufacturing industry
Industry News- Oct 18,23
ICEA chairman Pankaj Mohindroo expressed deep concern, acknowledging the plummeting morale within the industry and the discouragement felt by national champions.
The mobile manufacturing industry is reeling from a severe blow following the arrest of Hari Om Rai, the founder of the indigenous device maker Lava International, stated the industry body ICEA. Rai was apprehended by the Enforcement Directorate in connection with an alleged money laundering case involving the Chinese smart devices manufacturer Vivo.
ICEA chairman Pankaj Mohindroo expressed deep concern, acknowledging the plummeting morale within the industry and the discouragement felt by national champions. He emphasised the organisation's confidence in India's regulatory and judicial systems, assuring that Rai would overcome these challenges and continue championing the industry's development, crucial for the nation's progress.
Last July, the Enforcement Directorate conducted raids on Vivo and its affiliates, uncovering a significant money laundering operation that implicated Chinese nationals and numerous Indian companies. The agency alleged that Vivo had unlawfully transferred a staggering Rs 62,476 crore to China, evading tax payments in India.
ICEA highlighted Rai's stature as one of India's most prominent and inspiring business leaders. His pivotal role in driving the exponential growth of mobile phone manufacturing in India was acknowledged across the industry, leading to the establishment of a robust $44 billion mobile manufacturing ecosystem and the creation of over 1 million new jobs. Rai's strategic decisions ensured Lava's survival as a national brand, making it the sole Indian mobile phone company to withstand the influx of Chinese competitors, thanks to its aggressive pricing strategy. While Lava currently holds less than a two percent market share in the smartphone segment, it dominates the feature phone segment with a substantial 25% market share, according to industry estimates.
Earlier this month, Lava made ambitious plans to invest up to Rs 600 crore in product development and marketing. The goal is to expand its business by fivefold and capture a 10% market share in the sub-Rs 30,000 smartphone segment.
Source: Indiatimes
Lava International founder
Hari Om Rai
arrest
mobile manufacturing industry
ICEA statement
Vivo money laundering case
Indian smartphone market
industry morale
Enforcement Directorate
national champions
China-India business relations
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